FZO is a 'long duration' play as it's still not profitable and not generating positive cash flow, and is only expected to do so a fair way into the future. As such what we're seeing in the bond markets with higher long-term risk-free rates is going to disproportionately impact a long duration company like FZO. That being said, a close to 20% reduction in price over the last little while is IMO an overreaction.
Way I view FZO is that it's like a snowball: Extremely sticky revenue base that keeps increasing yoy - so just need to be patient with this until it hits the break-even point. I haven't done my own analysis on this break-even point but remember reading a Shaw & Partners broker note that had the breakeven point (at net income level) somewhere between FY22-FY23. Cash flow breakeven should occur earlier given FZO collects cash upfront on SAAS transactions.
Anyway a reminder: "The speed at which a business's success is recognised is not that important as long as the company's intrinsic value is increasing at a satisfactory rate. in fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price."
I'm focused on the direction of FZO's business growth - which IMO is trending very nicely.
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- Ann: Investor Update Presentation - March 2021
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42.5¢ |
Change
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Mkt cap ! $504.2M |
Open | High | Low | Value | Volume |
42.0¢ | 43.0¢ | 42.0¢ | $1.013M | 2.371M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 26236 | 42.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
43.0¢ | 61882 | 2 |
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No. | Vol. | Price($) |
---|---|---|
1 | 26236 | 0.420 |
1 | 2402 | 0.415 |
2 | 7500 | 0.400 |
3 | 136000 | 0.395 |
2 | 19000 | 0.390 |
Price($) | Vol. | No. |
---|---|---|
0.430 | 61882 | 2 |
0.435 | 540345 | 4 |
0.440 | 654301 | 16 |
0.445 | 361594 | 8 |
0.450 | 671524 | 13 |
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