bargain!

discovered ALT this morning, I was bargain hunting and since ALT was down 33% it showed up on my radar

I see a lot of upside.

Looks like some money has been burnt on marketing, and the result has been an increase in half year sales from below $10K to above $100K-- a respectable ten fold increase. Not bad, given that this is a new product that still needs to prove itself (although early results are very encouraging).

I bought a million shares at 0.3 cents after reading the announcement relating to the cost reduction initiatives. Unfortunately they've cancelled major marketing initiatives to reduce expenditure, but modest sales growth is likely come from word of mouth referral. And with regulatory approvals in US, UK and Australian markets, its easy to be optimistic about the growth potential. The company is getting valuable feedback from its existing customer base and it sounds like the latest version (3) is a mature product ready for mass distribution.

That said, despite cost reductions and sales growth, more capital raising seems likely in the future, but I think the share price will be well supported by an influx of new investors, such as the recently announced $500K from an investment fund. Its a vote of confidence in the company, product and strategy.

Oh, and the chairman is seeking acquire $1 million additional shares for himself at 0.3 cents in the current capital raising.

So 0.3 cents is a good price. It has ticked down to 0.2 cents occasionally, but at extremely low volumes and it will likely continue to do so from time to time. Which is a good thing-- its actually important to see the stock trade at 0.2 cents from time to time, as this will make the stock become apparent on the "daily losers" list which many investors use to find heavily discounted equities. Free marketing!

If you look at the market depth, there are so many more buyers at 0.2 cents than there are sellers at 0.3 cents. That margin is likely to keep growing over time, given that hardly any transactions take place at 0.2 cents.

This company has no debt, except for a small bank overdraft (which will be cleared by the current capital raising). It means that the banks aren't draining interest payments from the company. It also means there is no risk of loans being called in. That's very important to me when taking a punt.