Massive opportunity cost, page-36

I think WZR missed a great opportunity to generate shareholder wealth.

Growth companies generate most of the shareholder wealth during their explosive growth phase. WZR has nothing to show for that explosive growth phase. I don't think WZR can maintain these growth rates forever. If they go into the mortgage market this becomes a very high execution risk as the Majors will not cede market share that easily. Also, WZR is definitely not competitive as they don't have a deposit structure, and relying on international markets when the 10-year bond is on the rise would not be a sound strategy.

Few people think when WZR becomes profitable the share price will take off. I don't think that is correct. It will still be ex ASX 200 company, with triple-digit or high double-digit PE with a high PEG ratio. This is far from attracting value investors. I think most likely people would be selling to this good news.

The only reason I am not selling is there is significantly more value in the company than the current share price is suggesting. But I think there will be opportunities to buy this stock even lower than the current price which I thought is not possible even a few weeks ago. If there is good news and the price moves close to 25c I will lighten my position further, thinking I could buy this a lot lower. Hope I am wrong as I would rather be wrong and rich than correct and poor.