Member Info for Magsy18

It is not 'up to the company' to decide. Let me quote it again..

"An AIM company must issue notification without delay of any new developments which are not public knowledge which, if made public, would be likely to lead to a significant movement in the price of its AIM securities"

The first sale, assuming it is not some ridiculously small number, would lead to a significant movement in this share price due to the fact that it is the first sale and because of the current state of the market. GDR would have to report it without delay, not wait for a week because they choose to. I understand there is some wiggle room sometimes in regards to what is classed as 'price sensitive' but this isn't one of those times.

Unless GDR are breaking AIM rules, if orders/sales of any decent value have been confirmed then we would have had an RNS.

No they aren't all treated the same. What is classed as price sensitive is relative. A £10 million order to coca cola is a drop in the ocean for them, a £10 million order for GDR is borderline transformational.

https://docs.londonstockexchange.com/sites/default/files/documents/aim-rules-for-companies-july-2016.pdf

"An AIM company must issue notification without delay of any new developments which are not public knowledge which, if made public, would be likely to lead to a significant movement in the price of its AIM securities"

This swing of sentiment on this board is nothing to do with posters such as myself and Safy because we stay fairly level headed and take emotion out of the equation regardless of whether the share price has gone up 10% or 10% down that day. These swings are caused by the people who suddenly start claiming that off the back of a 10% rise that it's the start of a new dawn. This gets the hopes up of the more inexperienced investors and then when it doesn't quite pan out, the disappointment sets in.

I can assure you that if the reported sales are underwhelming that people like myself and Safy will be among the least disappointed on the board.

(I hope I am not putting too many words in your mouth Safy, just seems that we are on the same wavelength here)

Funny you say it's nonsense and then go on to compare this company to Coca Cola.

Coca Cola is a huge firm with an established sales record and revenue stream. Of course they won't report every new sale because the impact on the share price would be negligible. Now let's look at GDR, a growth company with comparatively tiny revenues and a brand new product. The initial sales will be hugely significant compared to Coca Cola and as per the AIM rules, should and will be reported on.

I think the expectation is there for a couple of reasons.

Firstly, DB himself expressed confidence in getting the first orders/sales during June and as we have received no RNS, we know that no orders/sales have been agreed as they would have been forced to update the market.

Secondly, when you compare these timescales to NCYT, they were reporting sales within 4 weeks of their product launch. Relative to NCYT timescales they also had FDA approval by now too with WHO approval due next week.

So it can't be that surprising that when DB's own confidence on sales was misplaced that investors confidence also starts to suffer. It also isn't unreasonable to use NCYT performance/timelines as a guide for comparison.

Re-certified.

This is something they already had.

It’s just the local time in India as that’s where the website is based.

Ok so people like IT contractors start their own limited companies to contract through. It requires no capital and no investment.

Depends. They can’t wait a few days if something price sensitive occurs else they are breaking the rules set out by AIM.

I guess even without naming companies, there are definitely companies out there whose owners were wealthy enough to finance the company without requiring external investment.

So either you don’t believe that the above scenario ever happens. Or you class it as an investment if an owner finances their own company.

Well, the examples I know of are friends/associates who own private companies which I won’t name so will be difficult to progress the conversation.

The scenario for one of them was that he and his business partner had plenty of capital between them to get momentum behind the company and they have never needed external investment.

Also you can get groups of contractors who set up service companies that need next to zero capital, never mind external investment.

Not all companies need monetary investment which is the type of investment we are referring to.

If you are saying that people should understand that when they invest in companies that part of the value of that company is based on speculation then sure, I agree.

When you said every company should be valued on their profits, did you mean solely based on their profits?

Many companies need investment to make money and if you should only invest in companies that make money then they would never get off the ground.

No one does though. If you valued most AIM companies based solely on profit then no one would ever invest in AIM. Some of the biggest companies out there would never have existed. Some of the most useful products/services would never have reached the market.

Not quite. May 28th was bigger.

Punter, I am not saying GDR is undervalued or overvalued but using the most recent accounts as a argument against it being undervalued doesn't really stand. A proportion of the market cap, depending on sector, of the vast majority of companies is based upon speculation. Certainly for this type of company, at this stage of it's growth, the recent accounts have very little impact on the market cap.

Safy, I know, comparing this rise to the last rise is not really a like for like and it is largely coincidental that it followed a similar pattern. I know some people love jumping on the roller coaster but this isn't the 1st, 2nd or even 10th time that we have had a 10%-15% rise on a day and suddenly it's rerating, or we have hit the bottom, or seller finally gone etc.

I was just highlighting a time when people on the board were saying things much like they are today that shows what can happen after.

Of course some news being released has to be closer and the moment that happens, all bets are off.

Sorry that's 16/06-18/06.

Take a look at the historical chart from 16/07-18/07. The same happened there, went from near 100p to near 130p in two days and then dropped back to the low 100p. As I said earlier, if it followed a similar pattern, today we would end up closing at around 115p, Will be interesting to see if tomorrow, assuming no news, we head towards 130p again.

Who knows after that but just keep it in mind that the board was saying very similar things 2 weeks ago and we ended up back where we started. Not saying the same will happen again but just something to keep in mind.

It's certainly encouraging, let's see how it compares to the pattern two weeks ago. It rose a couple of days in a row taking us to around £1.30 again. If it does the same again, we are looking at a close of around £1.15.