Auscrete Corporation (ASCK)

[piker86]

Based on their history of estimating these houses will be a lot more expensive than they think. They have years of history of not being able to do what they said, and now most recently, even a simple thing like moving equipment into a warehouse is way out of their ability to estimate. On May 29 they said "final installation of the Company’s manufacturing equipment will be completed in under 3 weeks". Seven weeks later they have "almost completed" the move. It is understandable that things take more effort than you think when you've never done them before, so their estimates on how much effort and how much money it will take to build these homes is almost certainly going to be a lot more than they think, since they have never done it before. Their small group has built model homes with the technology, but they have never hired and trained a work force to build these homes. Seems likely they will lose money on their first contracts, until they get some real experience on just how many costs there are that they didn't account for, and then have to jack up the price on future contracts. Will they still get any buyers at the jack up price? Will they be able to stay in business as they lose money on their first contracts?