Portfolio, page-106

Not sure if online retail is your thing @madamswer but currently researching STP - Step One Clothing.

They're at net asset backing which is basically cash and inventory at cost, so theoretically the value of the business is 0 as they could make their market cap through liquidatation. Plus given their inventory sells for 80% gross margin inventory would sell for 4x so net assets may actually be worth 2x market cap in value using my logic.

They've been profitable for the past 3 years though the question mark is diminishing returns on advertising which has turned negative in relation to obtaining new customer revenue, this may indicate their figures for 2020 and 2021 could have been a temporary boom and the market is now valuing them as a future negative cashflow company.

One of the highest percentage of founder owned shares on the ASX, capital light, long international runway if they can execute, some brand equity, valued at net asset backing.

Again the question mark is whether their business model can thrive going forward as their advertising costs are 40-45% of revenue and slight changes in advertising return metrics can heavily affect end result earnings.