yes bernsta....since the market turned to crap at the start of...

yes bernsta....since the market turned to crap at the start of the year I have noticed a new terminology has sprung up. 2015 was the year of the unicorn. A unicorn being a tech start up that makes it from start up to billion dollar company. This is supposed to be rare, almost mythical (hence the term unicorn) but in 2015 vast herds of unicorns have been reportedly trampling the grassy prairie lands of the NASDAQ. But with tougher times there has been a shift. 2016 is the year of the cockroach. A cockroach is supposedly the only creature that could survive a nuclear holocaust. In tech terms a cockroach is a start up where the founders have foregone much venture capital and fast growth early on in favour of slower safer organic growth, building a company that is a going concern (not just a good idea) with some revenue and well on its way to break even before taking it to market. Such a company is far more likely to make it through the tough times and emerge out the other end as the next Xero.

Whilst I have only recently even heard of the term cockroach I have long since intuitively recognized VPC as a cockroach. Not that our investment strategy should be so negatively constructed as to make this a number one priority but it does help me to sleep better at night. VPC need to (give or take) triple their revenue to reach break even. If 1PG triple their revenue they will be earning enough to pay for the first week of a typical quarter .....and ISX could triple, quadruple and/or then zigtuple their revenue and they would still be earning nothing!!!!! Both these companies have market caps that far exceed VPC. The gunnadoo rhetoric has proven to work well when herds of hungry unicorns are running amock and granting three wishes to whomsoever they encounter but with so many of the unicorns now all making the final journey to middle earth never to be seen or heard of ever again then I think all the gunnadoo speak will hold a whole lot less appeal.

Mind you, with all that said I wish 1PG and ISX holders all the best. I would much prefer their valuations stay high and VPC rise to meet them than for them both to crash and burn and come down to meet VPC's valuation. They still have a long long way to fall yet before that becomes a reality.