Don't throw the baby out with the bathwater

As I'm on a quick break in looking for toilet paper, spaghetti pasta, and canned baked beans I just wanted to write to everyone again.

With doom & gloom all around us, and despite the magnitude of all the unbelievable falls, I just wanted to highlight 2 facts that actually delights me as a long term holder of Nearmap.

1) Nearmap's Share price has finally overtaken Aerometrex after trailing them for so long... Hooray... !
2) With all the travel restrictions & US trade shows being canceled, Nearmap's sales & marketing expenditures will likely be drastically reduced !

Although I understand why people are pressing their "panic buttons" in selling everything, I don't understand why people are "Throwing the Baby out with the Bathwater" on Nearmap.

The truth is, with most of Nearmap's government related businesses, don't you agree that governments will likely to bring forward any construction & infrastructure spendings to prop up the economy? And marketed as a tool that saves time by reducing onsite visits across many industries, why would you not need Nearmap in a Coronavirus world order?

Just think about this logically, even in a Coronavirus world, don't we still need to perform the following efficiently & effectively?

• Installation of solar panels to save on power generation.
• Design & maintenance of roads & urban infrastructures.
• Continual assessments of insurance assets & claims.

An unlike the airlines or the retail "bricks & mortar" industries where being thrust in a Coronavirus world actually equates to near ZERO passengers or customers generating no company income, it is very possible that if Nearmap was actually forced to reduce all of its GROWTH related expenditures in the US due to our current situation then it might even reach profitability much sooner.

After all, expanding into the US has always been an enormous drain in Nearmap's funds, so the side-effects of a forced reduction in all growth expenditures in our current Coronavirus situation might actually improve NEA's short term financial health at the expense of reduced or stagnant growth rates. Obviously this is a "silver lining" to the current armageddon situation.

In terms of NEA's competition, in our current extreme bearish environment, it would be suicidal for Aerometrex to even try to raised the next round of capital to grow into the US (unless you believe the existing $25 million raised is sufficient). And with EagleView's enormous amount of debt in their books, even on a reduced US FED interest rate, with the skewed range of customer base that EagleView has, these customers will not do very well in the current climate, which means any major reduction in their income could spell disaster (or even bankruptcy) for them & their parent company "Vista Equity Partners".

Anyway, enough said, DYOR....
Please like if you agree.

For those with an Eureka Report login, you will find an interest article below:

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