What's the best ROE you think a company with this model can achieve, and what is your comparable for that estimate?
I understand exactly what you are saying about why they created intangibles, however none of that matters. What matters is that all of the money raised from investors that funded those purchases is getting a very poor financial return. And what concerns me even more is that the company on which they are modeled has the very same poor financial return.
At the same time, this doesn't make sense, because Pet based retailers like Petsmart were money machines with high returns on equity. Petsmart had many services connected to their retail, so there is a similarity there as well. What did Petsmart have that GXL and PETS.L do not have?
GXL Price at posting:
$6.78 Sentiment: Buy Disclosure: Not Held
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