I know the feeling! I’m trying to avoid concept stocks too but...

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Just_a_guy

5,421 Posts.

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13/07/18

18:42

Post #: 34335978
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Originally posted by andy777 ↑

Thanks Madamswer, your musings have provided some very valuable insights as usual. Being a former WFD holder and an active participant in spinoffs, I purchased a small holding in OMN at higher levels than the current price. I admit to using the 28th of June as a bit of a cutoff in terms of forced selling - obviously in hindsight 2 weeks later would have been nice!

After spending an extensive amount of time watching every video and reading every document, the idea appears sound to me. In effect they seem to be building a loyalty program that will provide benefits to the shopper. Rather than having to lug around 10 loyalty cards, onemarket will provide a single platform, along with AR and voice recognition. When I first read about AR it seemed a bit 'new idea' but looking into it more, it seems like a great idea. Just hold up your smartphone and get info on each store overlaid on the screenshot via GPS. Don Kingsborough has a good history of enterprise success and as mentioned the Lowy family are powerful backers, who must have deep networks amongst B&R retail.

Probably the biggest stumbling block is getting retailers to share their data? I have no doubt if they are able to get large numbers of customers to sign up this business will become valuable. My main concern is the protective nature of B&R retailers. Hopefully the amazon threat will overcome their aversion to data sharing. Obviously many of these stores are natural competitors and will be reluctant to provide data that could be used against them.

This situation as you mentioned seems unappealing for many investors. Not only is it an unnatural holding for many, the binary outcome is generally despised by the investing public and fund managers alike. Even for me (despite trying to use my maths/logic brain) the range of outcomes is pretty yucky. The potential for a complete wipeout must be in most investors minds. However, the strong right skew to the possible outcomes and the fact that several hundred million have been allocated/spent already, by sensible management, probably make this a lottery ticket with an expected value greater than 1.

I promised myself I would stop buying these types of businesses! No doubt the ride will be bumpy.

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I know the feeling! I’m trying to avoid concept stocks too but such a small holding in my portfolio from the demerger is annoying my ocd and I can’t bring myself to waste brokerage on selling it so considering buying more!

Did you come across the health condition that don kingsborough has. I noticed in the demerger documents that they mentioned that he may not be available due to health issues. (Not that one person will control the destiny of omn)

I also think the concept of omn is sound. The data reflecting consumer behaviour is horded by the FAAnG oligopoly so I think the data omn is trying to collate will have significant value.

Last edited by Just_a_guy: 13/07/18

OMN Price at posting: $1.02 Sentiment: Buy Disclosure: Held
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