Start up businesses take time to develop. As I said earlier on this thread, that means investors should be cautious as to how they assess value, particularly where management is relatively inexperience.
Like others, I hold a quite substantial stake in the company, essentially as free carry for the crazy time when this stock pipped 80c per share, 8 weeks after it was 16c.
I have progressively increased my stake using real dollars on the basis that this consolidation enterprise appears to have a growth strategy and is sticking to it. A share price around 20c a month ago, was overly discounting the progress the business has made and the CR at 45c. That sort of dumb stuff happens.
There is plenty of money in the bank, and both sales and GP are growing and cash flow positive is expected this FY.
I accept this is a competitive space but believe the more affluent Chinese product buyers have developed a preference to deal with organisations that at least appear organised, cohesive and above board. Most of the fragmented cheap diagou stores around the country are the complete opposite.
The A2 milk product added to the product range is being developed for older adult consumption, not to be confused with baby formula. Some posters don't seem to get that.
For me, I am happy to give management the time and space to execute their strategy. The SP is not relevant to me, during that period, unless it gets overbought or oversold. Then I expect I will move further
Posters seeking to down ramp by referring to store traffic numbers don't read too well, over 40% of sales are online, the stores are display cabinets.
Yes, of course there will be announcements coming, and I expect most to be favourable and the rumour mill will work overtime. Punters will jump on for a quick ride, and probably get their bums burned paying over the odds. That seems to be the perpetual nature of the spec end of the market. My view is to play it to advantage, but retain a substantial core holding in a business that appears to be distinguishing itself by its targeted success.
GLTA. Please know this is not advice, just opinion.
