Hey @Allymoa10, The short answer is yes, I don't think my...

Hey @Allymoa10,

The short answer is yes, I don't think my investment thesis has changed since my last 3 posts:

• Bear case valuation
• High-level overview of the current state of play and catalysts
• Industry trends and the suggestion of a share buy-back

In saying that, as I mentioned in an earlier post, the decision to hold here relies on none of the following happening: a) the investment thesis breaks (i.e. the GM contract is lost), b) the stock is no longer undervalued or c) I find a considerably more compelling idea elsewhere.

If I did exit, the main reason for it, currently, would be c) in terms of alternative investments. Given the latest reports on semiconductor supply chain issues, I don't see the situation changing anytime soon (i.e. the next couple of quarters). So, unfortunately, holding here does appear to have a major opportunity cost associated with it.

Interested to hear your views on why you "see it difficult for CXZ to win another major contract in the upcoming years" due to "the current climate". I would agree with the view that securing a new OEM will be a difficult task. The reasons as to why GM is such a sticky contract for CXZ are also the same set of reasons as to why it will be difficult to win a new OEM contract off an incumbent provider.

I don't believe that winning a new OEM is an essential catalyst to see value here because I believe the stock is undervalued even on current progress ($9m MC). However, there is the risk that the stock trades at low multiples/valuations forever and never finds equilibrium with fair value. Actions such as a share buy-back would help negate that risk.