How do you define 'material'? Is it something that is 10%, 1% or .0001 of the businesses revenue, costs or risks?
Can it be accurately calculated?
I don't know who FruitBox is, its a no name company to me and their projected delivery figures were not exciting so for me FB was never material as it didn't sway my opinion in any way of GSW and I didn't buy any additional shares because of that announcement.
If it had been announced that the FB contract had been terminated would I have sold my shares or bought more? No.
Does materiality change? For example 500 deliveries for a small fledgling business is big news and could be considered to be 'material'.
But when the business grows substantially and has signed deals for millions of deliveries from big names like NA Williams, Amazon, Red Rooster and Yum then a contract of 500 deliveries is now completely irrelevant and immaterial.
I'm a tad surprised by FB and the Furniture co signing a contract when they were doing a pilot... why would anybody sign a contract when your intention is to do a trial, last time I looked at GSW's website they offered a 30 day free trial, and I'd be surprised if an extended trial wasn't available for larger clients.
Your thoughts?
GSW Price at posting:
$2.92 Sentiment: Hold Disclosure: Held
