I'm not suggesting the US wouldn't be a good play and ag the right time it is an important expansion, just highlighting they need to sort their shit out at home first. Everything Grasshopper has said, has been taken into account for my own Thesis, and I obviously must take a well balanced view not to lean towards Grasshopper as it can be very bias based on his view of things. Right or wrong.
If Everything stated is true then, yes the business is not in a great state, and there are a lot of anomalies like the recruitment fee, and other costs that raise concern. This is why I've not expected an immediate bounce back in the price not a return on my investment soon.
The issues I've flagged over the last couple years have kept me on as a holder, not a continuous buyer even at these levels.
The US would have been an ideal expansion IF everything Domestically was running more efficiently and we as Shareholders didn't have these unusual queries, doubts, and are contemplating the ideas of the ex boss on a forum.
The US would break the business IMO. The blueprint is similar to many other investments I've made and businesses I've expanded internationally. If the foundation Domestically in your biggest market isn't solid then overseas failure is incredibly high.
My point is the piggyback into the US, Yes would've been a great pivot and long term paid off if things were running well already. I DON'T think its running well.
Between my own DD, considering Grasshoppers input and my own bear case pointers in my Thesis around board, remuneration, certain fees, there is a lot to analyse over the next few months.
I'm a holder, and not scared off a couple years of poor performance, I want them to expand into the US, just not with a measly $1m earnings to date..
LBL Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
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