I'm back from church. I believe it's priced in otherwise this would be way higher now. Positive cash flow is a good first step but shorts aren't running, they are increasing. Everything is priced in here at 42c. If it wasn't everyone would load up now and double or triple their money by Feb 2024.
The only thing that has caused unease in the short camp is this splitting of the previous management becoming CEOs of the two regions. This implies they want to sell the US or Aus business and making it as easy as possible for an acquirer, showing that if they swallow up either region it will be business as usual with no disruption and no hard work for the acquirer. Both CEOs will benefit with cash/script plus retain control of the remaining business - likely the Aus business already asx listed.
The easiest thing would be to sell the US operations with the US CEO to remain on for another year or two after the sale. Plus they would still have a huge holding in the asx aus business - money / management / control no matter what happens. Then come back and focus on Aus bus and the new products and services.
New lady CEO looks like a star with a big win on her resume when she goes for her next position too. Huge bonus when she closes the deal too. After a year or two US CEO comes back to Aus business if the acquirer doesn't want him to stay on. Huge cash windfall plus a huge remaining business to run afterwards.
This is the only thing that will shock the shorts and send the stock price moving back up. For now every rally in Zip is an easy short. Shorts always win.
ZIP Price at posting:
42.5¢ Sentiment: Sell Disclosure: Held
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