FZO is a 'long duration' play as it's still not profitable and...

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.