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tr0p0nini

150 Posts.

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30/08/17

12:21

Post #: 26863266
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Originally posted by Olaamigo ↑

I'm not a holder either but have been following CL8 with interest for a while.

First thing I'd say is that looking at CL8's historic statements pre 2015 to try and do fundamental analysis is not a worthwhile endeavour, CL8 is a completely different beast now than it was back in 2012/13.

Secondly, I'd say that if you're a student of fundamental analysis then micro cap tech stocks are not for you - CL8 isn't cash flow positive and its not going to be for a while, people aren't investing in it for what it currently is, but for what they think it could be - i.e. CL8 is highly speculative, and in my opinion is basically an ASX listed venture capital opportunity - which makes it quite unique.

The long view of CL8 is that its reasonably well cashed up atm, and is building a lot of solid momentum with brand name players - Uber, Subaru, RACV. If you look at Car Next Door they raised $2.5m from Caltex and when they were on shark tank last year they raised money with a valuation of $7.5m but only ~400 cars. For peer to peer sharing sites there's a critical mass of users you need to hit before it starts to gain momentum and it appears that DMC is beginning to reach that critical mass (the RACV marketing could really get them over the line).

The things which are holding me back from investing in CL8 are that 1) I'm personally not a fan of their shotgun approach at the moment, spreading their resources between DMC, Caravan and Mobilise. I'd like to see them focus on DMC and really get the right before working on the other areas. 2) I'd like to see a bit more skin in the game from key management, Chris Noone has a surprisingly low shareholding

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I didn't look at other micro caps, but the employees getting paid 4 times the revenue is a huge problem in any companies regardless of the size.
The reason Chris has so little holding cuz he offloads them whenever it's possible through ESO. This company was about to go bankrupt if they wanna keep getting paid the same way.

Let's see this year result. Wait, it's almost September.

CL8 Price at posting: 3.1¢ Sentiment: None Disclosure: Not Held
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