It’s truly quite phenomenal how undervalued this stock is, considering how strong the fundamentals are. These are the hard numbers, not hopes and dreams nor speculation. The facts: $30m EBITDA and revenue up 30% to $430m in the first half alone! People can try all they like to deny the truth, but the numbers don't lie (well, unless we are accusing the company of fraud!). There is a huge opportunity in the US for further growth as well, so this growth we have seen should only continue to increase. The party is only getting started for ZIP! Moreover, with rates coming down profit margins should expand as well. With a strong cash position (which is steadily increasing thanks to the large profits being generated) a capital raise also now seems out of the question. Despite all that is going for this stock though it is still valued like a business that is challenged/declining, not like the high growth and highly profitable company it is. IMO $10 is no longer a matter of “if”, but “when”. All we need now is for the market to actually wake up, the fundamentals are already here though.
Not sure why the market is taking so long to value this properly. Perhaps people are still perceiving it as the loss making company it once was? Either way, quality stocks like ZIP can’t stay so cheap for long, and it’s clear the larger end of town (the “smart money” like Regal and their friends) are beginning to notice this and hence are loading up on whatever they can get. That would explain the very consistent and sustained buying we have seen recently…
Looking forward to Q3 results in April. Not long to go and should show that ZIP is only continuing to improve from a fundamental perspective.
A big congrats to those who have been able to overcome the emotions and have continued to hold this winner, as opposed to selling for so cheap to Regal and the other institutional accumulators
