CTV 0.00% 0.8¢ colortv limited

I'm a cheapskate and I like to look for bargains. That's why I...

  1. 6,488 Posts.
    lightbulb Created with Sketch. 1889
    I'm a cheapskate and I like to look for bargains. That's why I looked at EN1 and many others.

    In the small, micro-cap end of the market you can often find some big bargains... but I'm not naive and to realise that to find those bargains you need to wade through traps - a lot of rubbish stocks. A lot of people underestimate how hard it is to be successful investing at this end of the market in the long run.

    Having spent just an afternoon looking at EN1, it's easy to see this is an awful shell of a company with:
    - a core business that provides a very questionable value proposition - there is no real long term moat
    - a lot of rampy announcements from the company about these record breaking revenue increase but if you just look at the revenue growth from FY 2018 to FY2019 - of an amazing... 1.5%, you'll realise that all the more recently reported growth is built on a lot of bulldust. Why else just focus on revenue but other metrics such as improved margins?
    - most of it's announcements are gobbledygook - a bunch of numbers with out context that you can't make sense of and not really providing you with a sense of the business. If you can make sense of it and have no doubts or any need for a bunch of very favourable assumptions to fill in the gaps, you're a bloody genius, too smart for me, good luck to you.

    For everyone else, don't believe the headline numbers, ask tough questions to see if it stands up to scrutiny.

    I remember a friend once told me in his first year of accounting, on his first day, the lecturer asked the class:

    "What does 1 + 1 equal?". First student said "2". Wrong. Next student sheepishly suggested "4" who was also told he was wrong. Turns out the answer (for this degree) was, "What do you want it to be?".

    Tread carefully folks, this end of the market is filled with a lot of crap that would be a stretch to call a 'business'.
 
watchlist Created with Sketch. Add CTV (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.