With a bit of luck short term holders will exit given it won't be until end of CY19 before we know how the scale up goes. There is a good chance the share price will drift down as those who made a quick gain in the flash crash bank their profits. As the SP ebbs lower, they may rush for the doors for fear their greed was foolhardy.
In April/May we expect an open investor day and ribbon cutting. I look forward to that.
The new data is out and it will be interesting to see how quickly any interest develops into collaboration agreements. Last time data was release, there was quite a delay before the SP responded. BLG SP never responds quickly to announcements because (I believe) someone other than a screen jockey needs to analyse the information.
It will be good when the BLG-300ii comes online and can start contributing to revenue generation, which lowers the net cash burn.
Will Lumileds wait until confirmation of scale up or will they ink a deal, conditional on scale up? It might be better for them to sign before confirmation.
Once the sellers leave, the SP should start to reflect the recent value creation from technical developments. Any low SP becomes another accumulation opportunity.
It would be good to get back to 32/37c SP levels. I don't like participating in SPPs on moral grounds (i.e. invest in the company) only to be a share market mug.
BLG Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
