Most of your concerns are addressed in the founder’s letter. I...

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lixiaouow

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29/02/20

15:03

Post #: 43234018
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Originally posted by DoubleDown!: ↑

For what it's worth I don't think this is a good report. A loss of $25m this year and shares on issue ballooning by 50% to close to 1bn.

Gross margin of only 50% means just to cover employee benefits you need another $20m of revenues. That's more than double.

Loss of goodwill on acquisitions of $3.5m means we've overpaid for something.

Consultants costs you'd hope were in relation to acquisitions and not going to be repeated.

Doubtful debts up by $700k to nearly $1m. Means we're selling goods to people who can't afford to pay us. With revenues of $18m that's 5.5% of sales not being paid for.

I think it's pretty clear that Animoca have expanded way too fast, they cannot handle everything under their umbrella. This company is wildly spinning out of control. A lack of financial control, a lack of regulatory control and management problems are plaguing the company.

They cannot go on like this and stay viable. They need to get their house in order, start generating revenue from their assets, stop the dilution from acquiring underperforming companies and show the shareholders they are in control.

Very fortunate to be in suspension. This report released at this time would see the company share price smashed.

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Most of your concerns are addressed in the founder’s letter. I am not optimistic for the short term SP as many holders will rush out if AB1 back to trade, but I am very optimistic for this year’s revenues after Sandbox, F1 and motorGP launches. The spreading virus will damage the economy but it brings opportunities for esports if many people need to be isolated.

AB1 Price at posting: 18.0¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

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Most of your concerns are addressed in the founder’s letter. I...

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