It’s definitely not roses. When the SP is where it is I take a scorched earth view to valuation settings and still see value.
To answer your points though: 1. You know this is not true. The margin is low but it is not loss making. Also, they sell other hardware besides Zoleo that has good margins and the pipeline of product development is actually pretty good 2. Agree. This is about disclosure we’re all seeking more of. 3. It’s still very early days and it’s coming from a low base. But I expect some disclosure here too so investors can make an informed view on performance. Not sure what you’re expecting in terms of volumes. My estimates were relatively low and even then the economics look good. 4. Good observation. Noted 5. There has been talk and I’m sure there are updates coming. I would expect the rollout to be relatively capital light as I expect no retail stores. We might need some in country sales, marketing and distribution people/resources but that’s manageable
BCC Price at posting:
20.5¢ Sentiment: None Disclosure: Held
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