The company doesn't even need to grow to make sense for a current purchase. Based on current EV its being valued as a mature company. Ignoring the 250k loss in fx exchange (the company advised their now holding cash in aud so it wont occur in future quarters) the company made ~350k in a quarter. Annualised at 1.4m the company is trading at what, a EBIT to EV ratio of 8? Thats great value even if there is no growth what so ever. The irony of your doghouse comment is that the longer the shareprice holds, the more cash at bank CXZ has and the better the EBIT/EV ratio, so quite to the contrary its actually more of a buy lol.
Risks are yes the GM contract may not be extended but as others have pointed out CXZ is continuing to do customisation work with GM as well as signing deals that last until dates PAST the current contract expiry. A pretty nice signal that the GM contract will be extended.
Are there catalysts for growth? 100%, you've got both the GM network growing (expected in a post covid environment) as well as adding new dealerships (looks like they've started 2 new trials with dealers based on this quarterly report)
Logically, you'll be rewarded if you hold, fundamentals will marry up to the shareprice at some point.
As always DYOR and come to your own conclusion
