good comment - i had similar thoughts and churn is definitely their Achilles heal. I would add that the industry has copped a huge flogging which would cause temporary churn - it may not be a product/market fit issue:
- construction trades insolvencies are really high at the moment (38% increase in construction according to ASIC). - VIC and NSW had big construction shut downs in oct nov for covid (subscription cancellation payout clauses may push those companies to churn out in jan) - inflation and building materials availability is slowing jobs down. eg: australia has almost run out of timber - Jan, Feb and March had huge problems Australia wide with COVID outbreaks and 7 day isolation requirements. Tradies just couldn't keep themselves or their employees on the job. - March had enormous floods in Sydney and Brisbane which shut down construction for up to 3 weeks +
All of these issues compound to cause temporary churn. On the flip side - floods and covid stimulus usually make for good building demand on the rebound........next quarter we will see if it was market issues or product issues.
HPG Price at posting:
$1.27 Sentiment: Buy Disclosure: Not Held
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