Of RZI’s $39.7m market cap, $9.7m is represented by cash at bank, so the enterprise value is only $30m. This seems very low to me, especially as the quarterly loss seems to be due to one off costs associated with the exit of the former co-CEO.
Why is the market cap so low? Maybe because the quarterly growth in Aussie subscriber numbers seems healthy, but the yearly growth is negligible which indicates some churn. Raiz say they are going to focus on customer retention, which seems like a good idea to reduce churn. But I would like a better idea of where the future growth is going to come from? I think the market wants more than just “we’ve now minimized operating costs and will try to reduce churn”.
In my own Raiz custom portfolio, Bitcoin has smashed all the other asset classes in terms of performance. Would be good if I could allocate more than 5% of my portfolio to Bitcoin.
Also, you generally get company growth when you do deals & partnerships. The property fund acquisition was good and done when the SP was high - it is coming on board (although taking a long time), but maybe they need to do something similar again?
RZI Price at posting:
40.5¢ Sentiment: Hold Disclosure: Held
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