RE: Cash burning business8 May 2019 10:54
Wow Nickel, are you really short here? I don`t want to sound too dismissive of your strategy but have you not been watching how eagerly these shares are bought up on every dip?
I don`t necessarily disagree with shorting any stock, its what makes the market go round, and I don`t short per se myself but if I did I certainly wouldn`t choose this one on the evidence of the share price action, reaction, and performance.
I wouldn`t dismiss the power of sentiment and potential here, even though you keep reminding everyone that they are not drowning in free flowing cash.....yet!!
It reminds me of a company I invested in years ago called NXT, a company trying to change the fundamental design of speakers. They had developed a way to vibrate panels and turn them into speakers. It was all back in the dot com bubble days. They were trying to disrupt how speakers were made, and topple the likes of Sony and Panasonic!!
All they had was a fist full of patents, a huge vision of their future, and a tiny office in Cambridge....so basically not a pot to p**s in.
The market went wild for them, even though the deals they were signing were only £1m here, £250k there etc, so no real profit.
At one point the share price reached c£19, valuing them at over £1Bn, yet they were turning over peanuts in comparison.
Sentiment is a very powerful emotion.
Bidstack`s disruptive technology suits all parties concerned generating big income for each of them so you`ve certainly chosen a risky punt in my view.
You may make some money depending on when you shorted, good luck with your decisions.