I like this thread of “$1 Club”. To clear up our minds, let’s ask some questions here:
1.If we invest the money to CBA or BHP today, would we see our money double or triple next 6 months or 12 months? I am sure it is very unlikely. Is it like to go down 50%? I say also unlikely. It means that it will be a safe investment, but not an aggressive investment.
2.If we invest the money into HT8, would our money double or triple in 6 -12 months’ time, I say very likely. Would the money go down 50%, I say possible, but highly unlikely. With a “Small Cap investment, with fundamentals in mind”. I give some points below.
3.Whatare the risk factors of HT8?
a. Sudden drop on revenue and profit? I say No.
b. Overstocked and cash flow cannot support it? I say No because we know it was under good experience management. It has a ratio of around 2 months of stock holding.
c. Getting into trouble with government such as ATO, or major platforms such as Amazon? I cannot see how.
d. Supply dry up – cannot source products from suppliers. Well, this can happen if there is a war with China. If this is the case, then I suggest all ASX will be wiped anyway.
e. Competitors take away most of the market shares from HT8? Well, again, whom and how? HT8 came onto the market with much stronger competitions, today it has won a few battles already, so I cannot see how a competitor can simply come in and walk over it.
4.Whatare going well for HT8?
a. A clear and smart strategy is working well. A business clearly has a very strong growth potential.
b. A very committed and experienced CEO whose interest is fully aligned with shareholders.
c. A very frugal operation with small overhead yet very efficient and effective.
d. Being ASX listed also means that some good checks and balances for us shareholders.
e. Revenue is going at a very fast pace with 10+% of growth rate each quarter.
f. E-commerce will dominate in retail shopping for the years to come and HT8 is a quiet achiever in this category so far.
5.Howlong do we have to wait before we get $1 SP? Well, it is not a $1 question, in fact, it becomes a $1Million Dollar question now. My answer is – it will with a bit of luck soon or later, but when it happens, don’t forget I have told you so!
(20min delay)