Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James, I note you commented in late February on AD8 after a talk with CEO/CFO. They indicated supplier of the Brooklyn chips committed to additional supply in March. Do you have update if this was delivered. How is AD8 likely to perform under an increasing inflationary environment, and with chip supply issues. I note the share price continuing it's 3 month downward trend. Hoping this question makes the cut!
Hi Alain,
Please note “the cut” is determined by the time as opposed to quality of question and you made it this week!
We haven’t had an update from the company since then around chip supply, however the additional chips had a greater lead time than a month. The stock has co continued to drift lower with chip supplies likely to be weighing on investors confidence along with the stock being associated with the out of favour growth sector. A rising inflation environment has been a headwind for virtually all growth stocks and this is likely to continue until inflation and bond yields reach a new period of equilibrium – we believe this can happen shortly on a short-term basis.
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