personally I think LBY management going for a slow and steady approach with an emphasis on staying tight on equity and growing more via natural cash flows. This gives them more room to throw a few share options at key merchants like Boohoo. Not necessarily a terrible long term play. The cashing up going on the moment In Afterpay and Zip is diluting shareholders to a point which demands significant GMV growth to make it equitable for existing holders. Market hasn’t reacted overly favourably to the ZIP announcement today. Since there clearly won’t be one or even 2 big winners is this game I’m not convinced in the urgency of acquiring such huge cash reserves. Can see the negotiating tide / power turning back towards big merchants. Relationships with boohoo , JD sports etc will be important. Just be nice to see a good handful more of the key merchants joining in partnership.
LBY Price at posting:
91.5¢ Sentiment: Buy Disclosure: Held
