VR1 5.26% 1.8¢ vection technologies ltd

I think this is very clever strategy to advertise in an airport....

  1. 84 Posts.
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    I think this is very clever strategy to advertise in an airport. Should there be more flight restrictions to prevent in person meetings for whatever reason (lockdowns, fuel shortage or labour shortage?) then Webex and Vection are implanting the idea to the right people that we have a solution to that problem, especially when there is a product to present.

    I wonder who is paying for this? Half and Half?
    I hope there is a good return on investment here. If Vection goes crazy spending then unless it's helping generate positive operating cashflow then it moves us closer to the next capital raise. If you look at the liabilities on the balance sheet I don't think they will want to go too far below 10M cash before they raise again. Just my opinion.
    I really hope they can show some positive operating cash flow, even small.

    Slight aside. I was analysing XERO just now for fun and have discovered that they have 1B in revenue with about 900M in debt and no profit.
    In my opinion this is slack from management and shows that some companies can string out actual returns to investors seemingly forever as long as they show revenue increasing. I would argue that XERO could have 10B in revenue and still not show a profit.
    To me this is not good enough.
    I mention this because it's my hope that as Vection grows we will have better discipline to not crank up the debt as high a possible and never show a profit.
    I know it's all very early days and so I'm not persecuting Vection if they don't make a profit in the next few years but I just hope they will eventually get there. Investors need a return somewhere along the line.
    Perhaps we have some assurance in the fact that some of the largest shareholders are management. This should provide a very good alignment of management interests with investor interests.
 
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