FZO is a 'long duration' play as it's still not profitable and not generating positive cash flow, and is only expected to do so a fair way into the future. As such what we're seeing in the bond markets with higher long-term risk-free rates is going to disproportionately impact a long duration company like FZO. That being said, a close to 20% reduction in price over the last little while is IMO an overreaction.
Way I view FZO is that it's like a snowball: Extremely sticky revenue base that keeps increasing yoy - so just need to be patient with this until it hits the break-even point. I haven't done my own analysis on this break-even point but remember reading a Shaw & Partners broker note that had the breakeven point (at net income level) somewhere between FY22-FY23. Cash flow breakeven should occur earlier given FZO collects cash upfront on SAAS transactions.
Anyway a reminder: "The speed at which a business's success is recognised is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. in fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price."
I'm focused on the direction of FZO's business growth - which IMO is trending very nicely.
- Forums
- ASX - By Stock
- QOR
- Ann: Investor Update Presentation - March 2021
Ann: Investor Update Presentation - March 2021, page-11
-
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add QOR (ASX) to my watchlist
|
|||||
Last
31.8¢ |
Change
-0.008(2.31%) |
Mkt cap ! $393.5M |
Open | High | Low | Value | Volume |
32.3¢ | 32.3¢ | 31.5¢ | $51.35K | 161.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
10 | 27106 | 31.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
32.0¢ | 10448 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
11 | 28375 | 0.315 |
3 | 8245 | 0.310 |
6 | 46359 | 0.305 |
6 | 94339 | 0.300 |
5 | 107873 | 0.290 |
Price($) | Vol. | No. |
---|---|---|
0.320 | 10449 | 6 |
0.325 | 21344 | 5 |
0.330 | 138588 | 7 |
0.335 | 107235 | 5 |
0.340 | 111002 | 5 |
Last trade - 10.16am 16/08/2024 (20 minute delay) ? |
Featured News
QOR (ASX) Chart |
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & Managing Director
Charles Armstrong
CEO & Managing Director
SPONSORED BY The Market Online