Jack1960, I agree with you. I found it interesting that people here who don't hold the share are down ramping all the time.
I have been gradually accumulating shares in this company. There are significant risks involved of course, but that is with any growth stocks.
One reason I have been confident with this company is that the company insiders (senior management team) and institution investors (this include CVC Group, a VC/PE investment firm and of course the Flannery family) have not sold a single share since it got listed. (Based on the institutional ownership information on my Bloomberg terminal). Therefore, I am willing to have a bet on this company.
On the financial side, it is always hard to analyse a growth stock as there are too many uncertain variables that will affect the performance. However, based on all the information provided so far, the company is in a healthy state and has enough capital to execute the expansion and growth strategy. At least, every quarterly/monthly updates have shown increased profit margin and increased revenue. Increased staffing costs and admin and marketing costs are always the case for a growth company to implement expansion strategy, however those costs will normalise with efficiency improved.
I will be keen to see the annual report in August to see the performance update and apply further judgement.
AU8 Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
