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ryan4321

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26/08/21

15:22

Post #: 55597125
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Originally posted by swc: ↑

Hi Ryan, I see alot of negative opinions not facts trying to talk down A2B.
As a short sellor, I guess you are worried that office workers are being encouraged to return to the office and the rollout of vaccines will increase taxi activity.

The majority of A2B taxis are in Melbourne and Sydney.
Premier Andrews announced a 2 stage plan on 26 Feb to encourage workers back to Melbourne offices.

Prior to Covid in 2020, A2B was profitable and paid a dividend in every year.
The only missed dividends are the final in FY20 and the interim for HY21.
In HY21, cashflow from operations was +$0.3M. ( -$1.0M if you adjust oper CF for lease liabilities in financing cashflows ).
Cash at 25 Feb 2021 = $ 19.2 M .
Not Bleeding cash or facing insolvency.

In the HY21 results CEO Skelton anticipates the resumption of dividends once trading is back to pre Covid levels .
He anticpates this to occur in FY21.
He also expects with the end of JobKeeper in late March, a significant number of taxi drivers ( around 3000 ) will return to work !
The AFR suggests taxi drivers preferred to sit on the couch and collect JobKeeper rather than work.

The UK court has just ruled against UBER in that workers are employees not independent contractors .
This makes it difficult for UBER to undercut traditional Taxi's .

A2B is a BUY when dividends resume.

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I think you have been proven wrong by this latest update.

A2B Price at posting: $1.22 Sentiment: Sell Disclosure: Held
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0 Great analysis

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