New to 4DS. Have done some reading. I can see the upside if things go well.
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But picking out the shares that will succeed and the ones that won't is very, very difficult to do on the ASX. After a few very poor investments of my own, I've become much more cynical of companies that don't yet have a revenue-generating product. It just makes me a little more wary that I may be investing in a far fetched dream, whereas I'd rather invest in a fantastic, growing company.
I'm still yet undecided on 4DS. But this is what I've found that worries me. If anyone can remedy that worry, I'd be glad.
1. The company made $32,468 in revenue in 2018 and took an overall loss of $5+ million. But during that same period, the CEOs cash salary rose by 31% to $346,000 and with share-based payments, the total remuneration package for the CEO sat at over $1 million dollars.
To put that in perspective, Altium's CEO makes $475,000 salary with total remuneration of $1.2 million.
No doubt, if 4DS is successful, the company can be as big as ALU, and the CEO can earn that pay. But for a company that could still go bottoms up, do you all really have no issue paying the CEO $346,000 for an as-yet commercially unproven, non-revenue-generating, idea?
If he really, really believed in 4DS wouldn't he be willing to take a $150,000 pay cheque with performance options?
2. As far as I can tell, there are no outside substantial holders. In fact only Mr Dorrian holds > 5% and he is one of the Directors. In total only 8% of the company is held by private companies and institutions own nothing. I just can't quite believe that a company that is going to revolutionise the memory sector, isn't being bought up by knowledgeable tech investors, silicon valley gurus and tech giants. Any explanation?
Honestly, I am probably going to annoy a bunch of loyal holders, and sheet, I hope it works out for you really. Like, I'm not ever going to be mad if you guys can make 10 bags. But I'm being wary these days and something about that CEO compensation and lack of substantial holders has me on edge. Anyone got some killer reassurance?
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