Quote:
Originally Posted by stinkypete
Congrats on getting more at a good price!
I bought 12k shares for the rafiki sweat. I know nothing about the company except that it's called Nanotech Security. Or was it Nanotech Securities? And that they signed some big boy contract (according to rafiki). Don't screw me my friend!
Remember when you asked for something high variance as a possible tax write-off? That was this. I just didn't have the time/desire to write up a big PM when you asked me. Traded all the way down around 1.10 in that time. Now back to 1.32.
My summary of the call in the value thread is legit. Coles:
-They have best in class tech in anti-counterfeiting
-Their tech is so best in class that China is having them do the new 100yuan (first ever foreign country to get that access with China)
and, and G7 and G20 countries too
-but despite dilution that looked like enough to float them, they burned 7.8m (on low revs) and had only a few Q's left of money, which is what caused the move from 1.55 to 1.10
-burn was happening because China has delayed the printing of the 100yuan now for like a year because they want it perfect, but each iteration takes 2 months (because of the China side). They don't get paid till they ship, so $ is stalling.
So going into the call, price action was super bad. And then on the call they announced their biggest dev deal to date, which lands them 6.5M in cash for 2017, and 30m total over 5 years. So when you add this, the China bank note eventually going live, and a new line of business they're on the brink of signing with tax stamps, they can double revs comfortably in 2017, and be cash flow positive in 2018. From there it's a lot of blue sky above since they're finding it easier to land contracts with every big country that comes on board. Also these countries give them more business potentially too once the relationship is born.
Anyway really more of an investment than a trade I suppose, but the boom at today's open was very much a trade and super obvious.
Btw Pete look up the tech. It's unreal. Can implement into luxury goods, tickets (they did the Euro), pharma, cigarette packs, whatever.