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.
- Forums
- ASX - By Stock
- Ann: Investor Update Presentation - March 2021
FZO is a 'long duration' play as it's still not profitable and...
-
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add QOR (ASX) to my watchlist
(20min delay)
|
|||||
Last
43.0¢ |
Change
-0.005(1.15%) |
Mkt cap ! $510.2M |
Open | High | Low | Value | Volume |
43.5¢ | 43.5¢ | 43.0¢ | $115.1K | 267.7K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 4079 | 43.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
43.5¢ | 677381 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 4414 | 0.430 |
8 | 103341 | 0.425 |
7 | 208894 | 0.420 |
1 | 5061 | 0.415 |
1 | 2500 | 0.410 |
Price($) | Vol. | No. |
---|---|---|
0.435 | 677381 | 9 |
0.440 | 604149 | 25 |
0.445 | 395712 | 14 |
0.450 | 707715 | 19 |
0.455 | 434568 | 6 |
Last trade - 10.59am 21/06/2024 (20 minute delay) ? |
Featured News
QOR (ASX) Chart |
The Watchlist
HAR
HARANGA RESOURCES LIMITED.
Peter Batten, MD
Peter Batten
MD
Previous Video
Next Video
SPONSORED BY The Market Online