Good points Faiseb, and I appreciate your work to try and put some value metrics around this company. I think the comments around competition are debatable. Yes, there have been many competitors, and new ones spring up all the time, but it is a bit like starting a competitor to ebay or amazon. The IT part of it is pretty straight forward, but the customer acquisition part is difficult. I don't see any real competition besides Shopback, or potentially one of the big loyalty programs if they automated the cashback (which sellers would hate, because they only want to pay commission where the sale was driven by cashback). And really, it would be cheaper and easier for a big player to buy or take a stake in CRW than set up in competition to them.
So I don't see the business model as fundamentally flawed, but I do think it is a race to maximise sign ups, and then to use those relationships to drive additional channel revenue. It will be interesting if CRW can execute additional partner deals with other banks/credit providers. If they can, it will become a feature of those banks offering, and the other banks will seek to add that feature too.
I think as investors we often look at what the business looks like now, and pay less heed to what the business is working toward. For CRW a large part of the potential value is in future execution.
CRW Price at posting:
95.5¢ Sentiment: Buy Disclosure: Held
