No profit warning, increase in marketing was flagged at yr end. Allocating increased marketing funds at this time makes sense as CAB wants people to take up its app.
Once the market is aware of this app, marketing expense will be dialled back.
So yes i expect FY2018 to take a hit, but for FY2019 for marketing to start to get paired back to a more normal level, hence FY2019 will receive a double boost (reduction in costs, but also increase in revenue)
The positive that i got out of the AGM was that finally top line revenue is growing again.
I am finally feeling positive again about CAB.
Hence acquiring now.
CAB Price at posting:
$1.68 Sentiment: Buy Disclosure: Held
