It is just the track record that needs to be overcome.
Critically, it is the financials that will tell us the story - the bottom line is the profitability. I am sure I am not telling you anything you do not already understand, but if $2m of sales only results in a net profit of (plucking a figure out of the air) say $400,000, then this gives us an indicator of the type of sales required to really move this stock.
We are obviously dealing with low cost/sell price technology here and so volume is key - this announcement is a great example of what proven success can generate, but I am counting on the gross profit % being well north of 50% - IMO we need this sort of margin, plus high and continually growing volumes to break us away from the ongoing burden of operating/capital costs.
We are in the green consumables space - the opportunity is there - just need to know that we are seriously profitable moving forward.
CNN Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
