My thoughts on AD8.

I always had concerns regarding this issue with silicon chips. AD8 are a small company and given much larger comapnies in the world are having similar issues of sourcing these chips it is of no surprise that Audinate have run in to these issues.

In my opinion I believe this is a short term issue which will impact the share price most likely throughout the next year. If the opportunity arises I will certainly top up (I hold only IRL). I am not overly worried about this concern currently. These are my reasons.

1) AD8 are the best in the field: they barely have a competitor now. Although growth slows in this period it is only for the short term. Pent up demand will increase and eventually orders will be filled. 

2) This issue is somewhat can be put down to demand for your product being high. The pipeline here is massive and unfortantely sourcing parts is the issue. This is an annoying problem but not because the product is poor or there is another quality product available.

3) AD8 have managed difficulties throughout COVID extremely well. I believe there engineers will move fast to develop new products eg next Gen Brooklyn and continue to manouvre well through these issues.

4) Demand for the product is strong. Does this mean Gross margins may improve? They are already very high.

I do agree AD8 sits at an extrmely high valuation. I am not a buyer here. But thats what you get for quality. they are 17x ahead of their nearest rivals and I think orders will be eventually filled once these issues are resolved. I remian bullish on the long term forecasts of AD8 and this one has always been a bottom drawer for me. I have always accepted the lofty valuations of AD8 and will just nip at the SP when I have some cash and the price is reasonble. 

DISC (held IRL only)