Now that AUMAKE has withdrawn the fund raising which will...

Now that AUMAKE has withdrawn the fund raising which will disgust so many shareholders with an instant loss and extra dilution of existing shares, it looks like they have made a good choice. However, the talk of capital raising via direct placement to "committed" parties to get 14 millions to continue their expansion strategies with more retail shops seem to be just hot air. It's likely that these committed parties are just fake or quite uncommitted. The market will know later if this is fake or real.

As all capital raising via placement I have seen, the market share price tend to dip below the proposed share price for the placement for a significant amount of time. This means AUMAKE is heading under 45 and will stay under for a while.

Their talk of opening stores in China is strange. The reason why people don't buy Australian FOODS in China because they cannot trust having fake food going into their stomach. Chinese are fine with fake products that don't go into their stomach. They make so many of these fake products from cheap to super-fake stuff. The nasty thing about Chinese market is that even the real wrapping/packaging for real products can sell. For example, the box for a real designer bag is worth a lot of money. Chinese sellers buy the real box and put a super-fake one in and flog them off. So a Chinese in Australia can try to get hold of Australian packaging materials and send to China. Then the locals in China will wrap their fake stuff in Australian packaging. As Australian packaging materials are made in China any way, it's possible to get them in China too. I see no real difference between AUMAKE stores selling foods in China and Australian foods from reputable big Chinese supermarket chains. I doubt Australian stuff other than foods and medicines will sell well in China.

The opening of new stores in Sydney will just eat more into their limited operating fund and probably increase debt (with the banks). Do Australian shoppers will buy from AUMAKE shops? Probably not as Australian shoppers generally look for cheap Chinese made products. Will Chinese tourists buy from AUMAKE shops in Australia? Probably small food items but not much else. So the margin will be low or even negative for the new shops.

To make this stock good for a punt, it needs to drop sharply back to around 0.15 then fluctuate wildly. However, if it goes on a painfully slow drop over 6-8 months only short sellers will profit. I don't know if this stock is available for short selling. Most investors probably won't be using stock brokers that allow short selling any way.

Anyway, under 45c is ahead, and probably a reality by end of this week.