Just some thoughts on a Friday. there’s a lot of discussion...

Just some thoughts on a Friday.
there’s a lot of discussion about whether the lack of profits is driving the share price down. I think we all agree that if PNV was posting a profit then the share price would be higher. Even those who are happy with the current state will be even happier when that happens. So probably not meaningful to berate those who suggest the low price is due to there not being a profit. At this stage, it’s perfectly reasonable for management to reinvest in growth. If they had banked the profits they are making, they would park that money in a high interest account - which really means they would buy managed funds, or assets with a high ROI - they’d be lucky to find one that gave 10%. Instead, they’re buying an asset class that is only accessible to them - sales reps - that have an ROI of well in excess of 200%. The downside of doing that is that they have to post their investment as an operating expense since they can’t liquidate that asset easily - but they wouldn’t want to anyway. Absolutely the right decision to buy as many of those as you can. Comparing that business to a genuinely loss making business is ludicrous.