Massive Existential Concerns

Been following the underlying businesses of MOZ for many years, through its ownerships.

I can't for the life of me understand how they have not raised capital and I can't understand the buoyant share price. I think the smart money left a while ago. My guess is that they can't raise capital at a half reasonable price. Apparently net $4.5 million cash as of half year report.

According to their own reporting, they have seen existential loss of value of their enterprises. Nobody eats with EBITDA and they are talking about a second half loss at EBITDA level. That is before the inevitable intangible writedowns which will occur in years to come.

Considering the leverage of 1400 store leases, one of the largest retailer commitments in Australia, these are extraordinary times and this does not compute. The equation makes no sense on a basic level. I've seen much stuff before and am certain there is only one answer here: the obvious.

There are fantastic retail stocks on the ASX in Australia. One good business, Kathmandu leveraged itself with Rip Curl (really should be a 3$ stock as it traded in last year or so), then blew up shareholder returns for years to come and past with a 1.2 for 1 issue at, um, 50 cents. They basically halved the 'real value' of many people's stakes by raising a 3$ stock at 50 cents (eg. ignoring Corona).

You can't ignore Corona. It is real. Kathmandu could pay its bills but it didn't come to market with pocket money; Kathmandu filled the truck at 50 cents! There is a reason for that. Corona won't be a single year thing.

Moz can't ignore Corona and its retail margins and metrics make Kathmandu look like a superstar.

Good luck to all holders. This one is not on my list at any cost.