Ann: FDV LATAM strategy update, page-15

"The company is not FCF positive, even less so now. The Catcha Group knew what they were doing when they sold."

Hi. I have a good (not big) position in FDV, and I want a clear headed view of its prospects.

From all your posts, the quote above seems to be the most pertinent. Are you arguing that FDV could have been FCF positive by now and mgmt has clearly dropped the ball, or are you saying, that FDV should have been FCF positive by now and given the macro environment, SH's will have to brace for less growth and more CR pain?

I obviously cant predict the future, but @maxkieh gave a good counter-argument:

"We are talking around 15 businesses some of which are in great shape (even if others go bancrupt). Zameen's traffic has gone up in the last couple of months (and that's more than enough to cover the whole market cap). "

I tend to agree that Zameen's valuation gives us SH a great buffer to weather the macro environment storm and if we believe in Shaun and his mgmt team, then FDV will produce significant profit after that.

The next quarterly report will be interesting. If Zameen and other businesses are still growing (or stagnant in this environment), then we have good reason to remain optimistic.

What do you think?

PS my sentiment remains a Buy because of the depressed SP. I want to buy more but will wait to read the quarterly report.