Capt Blood makes some valid points on timings. Ground breaking technology does take time and the reality of that has hit the share price. The company publicly over-promised on timelines and consequently the share price has suffered as initial timelines have not been met..... especially in relation to SFP sales. The uptake in sales of SFPs is disappointing to date although the SFP was the never the technology game breaker. Having said that, many of us were expecting sales of SFPs to cushion the cash burn and because the SFPs have not provided significant revenues, the company has had to undertake two capital raisings since IPO. They raised $7M at $2.50 in 2017 and now $5M at 80c in 2018. I don't think the company envisaged raising $12M in addition to the IPO and still not be bringing in substantial revenues. Call it business naivety perhaps?
Where I disagree with Capt Blood (he has a current 'sell' sentiment at 55c) is that I think even "if" there are further delays (not saying there will be) and it takes longer to get to 'printing complex parts rapidly', the valuation will still be much higher than 55c per share IMO if A3D proves they can print complex parts rapidly (ie. much faster than anything currently on the market) whether that's 50X, 100X, 500X or 1000X faster. There are plenty of tech companies still "in development" whose valuations are very large.
David Budge and his team of very clever engineers and other staff are having a genuine crack at disrupting traditional manufacturing and if they pull it off there is no doubt in my mind that the share price will be multiples of 55c regardless of how long it takes to start selling MFPs and LFPs.
Of course this company is still high risk. If they ultimately fail on the LFP tech, then they have to go to plan B and that I would imagine would be producing and selling metal powders for the various industries that require those powders.
The stock has been a roller coaster and in hindsight overshot on the upside and in my opinion has now overshot on the downside. Guess what? That happens a lot in markets especially with high tech companies.
Time will tell whether 55c is cheap or expensive. Capt Blood is entailed to express his opinion that 55c is a sell. My opinion is that it's a buy. I've been wrong plenty of times before though.
As for escrow ending in August (4 months), it's pretty obvious there is very little liquidity in A3D. It would be almost impossible for anyone coming out of escrow to sell many shares on market unless they want to drive the price to 20c or less. The reality is that anyone in escrow wanting to exit a portion of their stock has to hope there is significant good news in the next four months to provide the liquidity to partially exit without causing a collapse in the share price.
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