I am not a chartist. Don't care for moving averages, candles, double tops or double bottoms. These things have their place for stock traders more than investors, in my view.
I look at AU8 simply as a start up business. It needed capital, it needed stock it needed customers and it needs to show a pathway to cash flow break even and ultimately profits. These are the fundamentals of business.
Nothing was ever going to happen in the first 6 months, but the SP increased by 500%. That was just wild speculation and FOMO and the likely investors in this business are recognised for both. In the end, the SP will respond to fundamentals of the business, either in advance if the story is compelling, or in arrears if the market remains in doubt. AU8 has tasted both treatments.
I like the fact that management have stuck to their knitting, trying to build an online channel as well as develop premium daigou support for own brand products. They are trying to build a brand/system that can be replicated and it is still early days with reported results only covering 15 months trading. 15 months!
This is not an easy market to crack and the business is yet to genuinely have hit a sustainable financial model. That said, they have come a very long way in a very short time and developed some credible financial relationships along the way.
Within 9 months the business will have either posted maiden cash flow positives and profits or not. It will have consolidated its financial position or not expanded its product range / assumed 100% ownership of own brands.
I am happy to wait for this time to play itself out and give management the opportunity to do their job. The market is rightly skeptical, that is why the stock floats around 20c. After another 9 -12 months it will either be dust or 30c - 40c. That's the risk an investor takes at this end of the market.
Being kind, some of the comments and so called analysis on this thread would be more correctly directed to Woollies, Coles ,Myer or DJs more than AU8. That said, an uneven playing field in financial acumen is what creates opportunity so far be it from me to object to the thoughts of other investors. This is a forum, some people talk with their keyboards, others with their money. Only one stands to make a financial return.
GLTA
DYOR
