OTCPK:EUCTF - Post by User
Post by
shawshankon Dec 21, 2015 5:16pm
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Post# 24402780
LSCFA One Simple Reason for Discount to Cash
LSCFA One Simple Reason for Discount to Cash
Development costs are a given.
Lack of any visibility/guidance/discussion/communication/transparency/clarity/aquisition discussions/ corporate timeline tightening on going live now that the period in question for rollout is drawing near on the que related to XwinSys- and their Go4Wd
strategical and tactical expectations in that regard.
When you DO NOT pound the table just ahead of your timeline projections on your NEXT product/technology that has been developed with some of thee largest Semi C
companies in the world involved in que development and commercializating process
but instead talk about what is past tense vs the future product market and ROI potential
you keep investors in the dark and in a period of uncertainty...as in okay..."what's next?"
You will see small biopharms talk nothing about the size and scope of their targeted medical sector-for the entire 10-12yr period it takes to get a drug application thru the Phase Ia/ to Phase IIIb and eventual FDA approval process...WITHOUT during that entire 12yr period doing anything BUT spending money without a single penny generated in revenue but if they encounter trial success at various stages along the way and continue to stay visibile and court the market and investors to the investment opportunity at hand based on the annual $ whatever sector their drug (if successful and that is a big if) will be marketed in...and I personally have been the benefactor of huge winfalls when a small relatively unknown drug discovery company indicates early success and has larger pharma come in and pony in development capital...(not unlike what SICPA just did with EUO) and go from pennies per share to $10 or greater and burning thru cash like a drunken sailor at the pier cathouse on shore leave (Transition Theraputics CEO Tony Cruz a decade ago I made out like a bandit on it doing just that).
It is the same with small technologies who feel they have break thru sector technology at hand-and about to come to market...you will see these companies hemoraghing money but linked with the right partnerships...trading at billion dollar market caps some of them just on the communication to the sector ROI opportunity at hand.
We do not see EUO doing this which admittedly has me concerned...inparticular when Rowlands missed a prime time time to do such on BNN TV during a ROB TV interview
which would have cost nothing.
And this is divergent with normal practise...some companies have a long visibility campaign lead up to product rollout-BR has provided none...cept to inform publicly he will be drawing down a personal services contract with SICPA for a product the company shareholders paid for the development of and he intends to be rewarded personally outside of the CEO role with Euroncontrol?
That is why valuation traction remains stagnant.
When we get some table pounding on XwinSys
and their g04wd strategy-going live timelines etc
etc-we will see some movement in valuations.
Right now you have trading amongst existing
shareholders vs the attraction of new ones
coming in-occuring and nothing more.
And when that happens?
Price stagnation is the outcome.
SS