While I agree with GW on several points, I would disagree that Ensogo is on the cusp of bankruptcy. Yes, they lost a$80m in 2015, but a$49m was a non-cash impairment charge - basically acknowledging that they bought Living Social and all those SE-Asia websites at inflated (well beyond book) amounts.
A more reasonable analysis is their burn rate; they had negative operating cash flows of a$30m in 2015, or burning about a$2.5m per month. Assuming this holds, they have about 12 month runaway with their a$29m in cash currently.
But that basically means they will have to raise capital again in 3Q-2016. Hopefully they will have 1H-2016 to boost certain operating and revenue metrics to justify getting more money from VIP, FIL and any other investor.
I am still holding my shares (and my breath) - I do think there is huge potential in this segment where Ensogo is very well positioned to be the #2 or #3 in the region. They just have to 'burn' the smaller competitors to the ground first.
E88 Price at posting:
$1.70 Sentiment: Hold Disclosure: Held
