Disappointed with strategy, page-5

At this point I don't have any predictions.

Prior to the last investor call, RBL management was openly hinting there was tremendous operating leverage within the company. That came through on previous analyst conference calls and we were starting to see some healthy margins that made RBL standout from its peers. What seemed to be sound investment and reinvestment by previous management has been blown out of the water by the current CEO.

Investors will be right to be feeling whiplash after that. Suddenly RBL is just another tech growth wannabe, with low single digit margins.

I could better understand or be more forgiving if the investor presentation put some actual meat behind the rational for this surge in spending. But instead we got a three bullet point strategy with a couple sub bullet points in support. That exact same strategy - enhancing customer experience, continuing to earn in core markets, & growing customers - to me isn't compelling rational for a spending spree. Indeed - it's just a status quo rational. I guess we will see lots more developers, more graphics, better/bigger leased offices & artwork, probably a handful of culture/people/growth c suite appointments, and hopefully some better customer support.

The only thing I am now certain of is overheads will balloon and margins will shrink.

And yes -for those who like to point out the CEO has $2m of shares - I know - remember the shareholders funded $1.6 million of that.