The latest 4C contains something very astounding. This is a big...

The latest 4C contains something very astounding. This is a big part of my emotional attachment.

It's been mentioned before but in the the latest 4C, it's so very clear. The latest 4C is just a beautiful set of numbers, very hard to cut it any other way.

So I think it's worth this calling out again.

How much capital did it take for ZNO to go from negligible sales circa 1.7m last year to over 31m this current year? A mere 88k. For some perspective this is just office chairs, desks and shelving, or leasehold improvements linked to an office move. hence nothing at all!

Their margins are improving as more product is made, and with the 4C, what isn't so apparent is their levels of inventory which would be rising notably. So we see the cost of operations and production but part of this is attached to unsold stock, and hence their margins are stronger than at first glance.

In fact cash flows are so strong the stock is trading at a Price to Operating cashflow run-rate of 18.5. This is very low. Bear in mind than Operating CFlow is way harder to manipulate than "Earnings" that is used in the eponymous PE ratio. Don't let others bamboozle you with fancy ratios - just pay attention to a Company's operating cash flows and the cost of maintaining/growing that cashflow stream (which is nothing).

So as sales ramp, these numbers will look even better. To those that say sales is not profit...for ZNO at least this isn't strictly true due to its capital light business.

Lotsa noise atm, especially with the SP swings and posters with their agendas (applies to me too of course) - but all that needs to be done is to reread the latest 4C. Pay attention to the above sections and re-read what management have said in their report. Mgt guidance always to be read with a grain of salt, but where mgt have not disappointed or on balance have a history of coming through, then less salt is needed!

What I see is a truely capital light business, with good and improving margins, a business with ramping sales, a business entering new markets, a strong moat, a good product with a clear point of difference, a product that meets a sizeable need and importantly, is seeing a deeper and quicker adoption in a worldwide market.

With the SP at current levels...well, all you need to add is some emotional attachment!

Note: I obviously have an agenda (like everyone else), so DYOR.