Reasons why I have picked NOV: - Fingers in many pies (also a negative, as distractions and if not done well increase risk) - Willingness to innovate - Ability to play with the 'big boys' (Afterpay, Marqueta, Bank Licence etc) - None of the market segments are big enough to express dominance (yet) but we have all seen how growth can suddently explode once at critical mass (also a negative, as may never get there - and always bumble along) - Founder still involved
Why I am still buying: - Majority of Exec team / GMs etc been there a while and come either from internal promotion or solid external pedigre - Senior team continue to demonstrate a willingness to 'muck in' and get stuff done - rather that just managing - Cheap relative to most metrics - Reckon. Every share I buy is 80% NOV, 20% Reckon which lowers relatively risk a little. - Reckon. Cashflow.
What I don't like: - Emersion - Struggled to grow. Purchased by NOV. Still struggling to grow with more staff = cash burn. Offload it. - ATX - (Lack of) messaging / detail on how the business is going, and have not executed on any of the identified growth areas (expansion into Vietnam, lending). - Messaging re: cashflow, GTV etc moves around to put spotlight on flavour of the month area. Undermines confidence. - CEO comes across as too nice, and am concerned that doesn't have the brutal edge to make the tough decisions (e.g. cut staff to become cashflow +ve, offload Emersion if failing business etc)
NOV Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
