My simple investment thesis on APX:1. Moat - Not an expert on...

My simple investment thesis on APX:

1. Moat - Not an expert on this, but the way I see it is like this - In the heyday of A2M and APT, did similar businesses pop up and get listed on the ASX to grab a share of the booming market? Yes, WHA, BUB and a few other smaller ones came to mind for baby formula and heaps of BNPL got listed following APT and Z1P's success. But as far as I understand, this wasn't the case for APX as it would be hard to replicate what they do.

2. Low debt high cash position - this allows APX to invest in growth and be flexible to adapt with changes in the market. And less of a chance to go belly up

3. Are they in an area with tremendous growth opportunity? Yes, AI.

4. Is the valuation too demanding for a good risk/reward? I think $11 to $13 provide a good entry point without taking on too much downside risk, considering the P/E.

5. Are they still growing earnings and revenue? Yes

6 Pay dividends? - Yes, albeit not that much but still better than a lot of savings accounts these days.

Conclusion - IMO worth a punt and hoping for a turnaround story considering they have recently announced a restructuring of their offerings and have confirmed guidance. The bad news have already been priced in during the down turn.