I don't think you are giving the business model enough credit....many players have had bamboo undies for years, hidden away in department stores with no advertising support.
These guys are on-line only, have built a strong brand, offer new patterns almost monthly, advertise regularly (probably too regularly given spend vs sales) have a very low cost of delivery relative to most on-line stores/products, and a good product.....and underwear is their business, it is not Nikes, not Kmart's...
That said the key here is cash + inventory exceeds the market cap, so you are paying nothing for the business. Australia has proved it can generate $10m EBIT per annum, and on-track again this year in my humble. Following group EBIT of $1.8m Q1 I would be surprised if they didn't deliver $4.0m Q2 (Black Friday/Cyber Monday/Xmas). In Q3/Q4 they are cycling $4.0m in US losses, so a modest reduction in ad spend should deliver another $10m FY.....cheap
I don't think you are giving the business model enough...
Add STP (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$1.27 |
Change
0.000(0.00%) |
Mkt cap ! $235.3M | |||
| Open | High | Low | Value | Volume |
| $1.28 | $1.29 | $1.26 | $182.0K | 142.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 744 | $1.27 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.29 | 1081 | 1 |
View Market Depth
| Last trade - 16.10pm 27/05/2024 (20 minute delay) ? |
|
|||||
|
Last
$1.27 |
Change
0.000 ( 0.27 %) |
||||
| Open | High | Low | Volume | ||
| $1.28 | $1.29 | $1.26 | 26732 | ||
| Last updated 15.59pm 27/05/2024 ? | |||||
| STP (ASX) Chart |