Ann: Sale of NZ business and assets, page-39

@mal85,

This is a truly astonishing transaction, relative to the value of the company prior to its release.

My long-made observations are that, after a tectonic event such as this, companies are almost never somehow magically efficiently priced. And, like you, I sense, I think the company is still being undervalued, even after the stellar share price in recent days/weeks.

Normally I wouldn't bother with such a situation, but that the market got this stock so excruciatingly wrong in relation to the NZ business tells me there is a good chance that it is committing a similar misunderstanding about the Australian business.

You appear to have some firm views on the revenue opportunity in Australia; citing figures of $15m ARR within 6 months time, and the scope of $25m in Revenue as well.

I have no need to doubt those figures, from the likely size of the overall revenue pie in Australia (I mean, crudely, if their NZ business ended up at Sales of $18mpa, then by simple proportionality, the revenue opportunity in Australia could be at least double that figure, and probably triple it, and possibly quadruple it.)

But what I am trying to learn more about are the possible impediments to that Australian revenue opportunity being accessed adequately in a way that would justify a significantly higher valuation than the current one.

To that end, any chance you - or anyone, for that matter - could shed some light on the competitive landscape in Australia, who the main players are, the genesis of market shares, industry structure, existing distribution infrastructure, customer acquisition costs, contractual terms... anything along those lines?

Or anything that could be instructive as to how easy, otherwise, it will be for SMP to hit, say $50m in Revenue in Australia, and what the practical hurdles involved, could be?

Even references to publications and/or reports, for the purpose of me conducting my own first-principles research, will be helpful.

.