After entering VEE following my previous posts, I continued to research and sold about week after entering (for about the same price) because I found a few red flags and I wanted to share them not to down-ramp but purely for transparency & information sharing.
Reasons I sold:
1. I like the gyro stabiliser product & it appears to be disruptive but the total addressable market (TAM) is just not big enough. I think a VEE presentation stated that the total global market for stabilisers is worth $270 million p/a and as a TAM for a disruptive tech product that's just too small to justify investing here IMHO.
2. I didn't like the ongoing divvy payments. If the business plan is for growth, it doesn't make any sense to burn capital on a divvy and my concerns over this were a red flag given the huge share ownership of the family who originally owned the company and put it to IPO. It looks to me like that family is prioritising their own cashflow via divvy above the growth aspirations of the company. Huge red flag for me.
3. On the subject of family, I didn't like the idea that so many family members are still holding key positions in the company. I totally understand that they would know the business and the product exceptionally well, but when you want to become a global player & a heavy hitter you go out and hire people that have a track record at leading growth companies. I watched the company update video and wasn't impressed by the business acumen or sales pitch produced - I don't think these guys have the right pedigree.
GLTAH, I've probably read this wrong & this is just my 2c worth.
VEE Price at posting:
48.0¢ Sentiment: Hold Disclosure: Held
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