It's hard to provide a positive for a product suite I haven't used
What I do know is that CRO's current APP products have only brought in circa 1/12 of the revenue required to cover the outgoings, neverlone turn a profit
That revelation skews my opinion to the negative as it's proven itself thus far to be a resounding dud
AF has been involved since 2015 and hasn't managed to turn it around in 6 years, either as MOT or CRO
Neither have the other directors
So the evidence highlights two major issues
Bad product, bad management
So onto the merger which is the next climax
Will that turn things around?
I don't know, why would it?
They had CU2 and the investor presso showed that $2m income a month was their target
It was a total failure, so is it bad product or bad management or both?
Let's assume this time is different
Let's assume they have been using CRO as a funding vehicle to fund the remaining APP product suite as this was always to be the cream del a cream AF has been working on for years
Then what I'd like to see is that the other Spenda products held by AF have been producing great income for APP
If not, then putting one dud with another doesn't give me much confidence
The mere fact he was happy to take $5m worth of shares tells me it either has $500k net profit pa and much higher revenue or it's a marginal business earn at $500k revenue and has relied on government grants and CRO funding to survive where even $5m is overs
I'm tipping it's the latter but I could be wrong, hopefully I am
But then one product from the suite, Spenda collect is now the new game changer, just like the other acquisitions were going to be in different figures, so how can one dismiss all the information at hand and say that yes this is the bees knees which will change the world in the payment processing with bnpl attached
My personal view is AF can develop products but his or and his fellow directors are poor at sales execution/ revenue generation, which is fair enough, he's a software developer, so do that but get in the best of the best to sell it
He also remarks about further acquisitions, this tells me he hasn't learnt from the past, growth by acquisition always sounds good in theory but rarely works, just ask Slater and Gordon holders, or look at this companies dismal past acquisitions for reference
He's managed to get Fiserv to provide their service which gives him visa and MC and I applaud that
I think what is missing is a gun sales chief, without mass on boarding this will end up just another failed product that looks the goods but fails in delivery
Will wait and see
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