I can't remember if it was stated by management a while ago (i.e. several years) or was inferred by SH's (such as myself), but i still suspect that the strategy is to fund further geographical expansion with each region hitting profitablility, so achieving the deferring of taxes whilst continuing the land grab globally whilst there isn't yet a dominant player, with the intention of becoming the dominant player.
If that still holds true, then SH's need to be realistic that the SP might not increase meaningfully anytime soon, as mgmt won't be drawing a line in the sand for the market and saying "we are now profitable, watch the rivers of gold flow" they will defer profitability until they feel they have expanded share far into the main markets.
Whilst this is a proven strategy when successful (cough Amazon cough), it does mean anyone feeling pain now should prepare themselves for a reasonable chance that their hurt will continue for quite a while yet.
Unless mgmt throw the market and SH's a bone with a period of profitability to prove that the underlying fundamentals are healthy, which is a possibility.
If that happens, and getting out is your plan, i would strongly consider doing so then, as if and when the next expansion phase is started, expect costs to rise and profitablilty to disappear again.
I have made my peace with it, and Hold, but unless offered a "Covid price" again (which i missed in 2020, gah), for me, there is opportunity cost in committing more funds, until mgmt confirm switching focus from expansion.
NEA Price at posting:
$1.74 Sentiment: Hold Disclosure: Held
