CXZ connexion mobility ltd

Ann: Quarterly Activities Report and Appendix 4C, page-40

  1. 10,628 Posts.
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    GeniusInvestor, my view is CXZ is a severely underpriced lottery ticket.

    The facts today are - we have a profitable, cash flow positive, debt free, small cap stock who has a working relationship with one of the largest car manufactures in the world and developing a somewhat unique technology - that's an enviable position and the stock can be purchased for a PE of say 6.

    A PE of 6 not only implies no growth, it implies negative growth.

    Moving forward:
    • The GM contract could be renewed along with other contracts, this could make CXZ a high growth stock and a PE of 6 is absurd.
    • The GM contract isn't renewed... well one could argue the stock is already priced for that and yea there maybe some tough years, but considering the IP and experience the company already has, it probably won't be the end.

    In short, I genuinely believe CXZ could offer returns of 500....1000% or more return to investors (in part due to it's existing undervaluation and future growth opportunities).... but as always only a -100% loss worse case.

    That's a convex payoff and thus why I am invested!.... but only a small part of my portfolio.
    Last edited by convexity: 04/11/20
 
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Price($) Vol. No.
2.6¢ 361617 4
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