Indeed, CXZ is now at an Enterprise Value of sub $10M AUD.
I'm already overweight in CXZ, but personally, I'm loading up the truck again at these levels. Sometimes one has to look silly in the short term to be revealed as wise in the long term. Buy when there is blood in the streets. I'm able to hold these shares for many years if needed.
There's a lot of movement happening in the background right now with GM. GM has offered OnStar as a connected/fleet service for years. It looks like GM is now ready to take it to the next level. At GM's 2020 capital market day, the company discussed licensing, subscriptions and customer insight/data opportunities from the connected fleet.
According to GM, OnStar and Connected Services are cash generative. GM has 22 million connected vehicles on the road globally taking 150,000 calls from its customers each day. GM is expanding its OnStar/connectivity platform to the two new EV entries for Honda that GM will be manufacturing as part of their NA strategic alliance. Also, on the 18th of November of this year, GM made an important announcement regarding OnStar Insurance. I'm looking forward to hearing how the CXZ DMS integration strategy plays out.
GM is positioned to capitalise on IOC (internet of cars) -- there's a big opportunity for CXZ if they play their cards right. Renewal of the GM contract should send the share price back up to 2-3c.
DYOR etc. etc.
T.E.P.
CXZ Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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