The problem is, rather than developing products, the company has gone backwards in terms of product innovation. They have gone from the idea of a low friction wet brake to simply having a standard disc brake with a plastic shroud to keep dirt and dust out. It's difficult to market products that have no unique selling point (USP). The company should have dedicated more time and resources to develop a product that was actually innovative and different in the marketplace. Unfortunately the cash has already been burnt on bad ideas resulting in the dilution and low sp that currently exists. Had the investment capital been better spent the company would be in a much stronger position.
In relation to the fixed costs - a rigorous investigation of those costs is in order as I can't understand how a company that small can still make a loss given the revenue it makes.
ABV Price at posting:
0.8¢ Sentiment: Sell Disclosure: Held
