The market is looking at this company the wrong way, they are still growing and are not looking at returning good margins or EBIT yet. The value in this business is the 40m plus users, revenue and deep government and banking connections that you cannot just buy in China.
This business has some extremely valuable attributes that i believe are being missed by the aussie punters, i am sure there will be some bigger fish running the ruler over these guys because you just can't build what they have in China.
Seems people are concerned about the cash burn but they have missed that a large portion of that cash is just sitting in a cycle of bank reward point redemption's. NNW lets customers redeem bank reward points but is not reimbursed for up to 60 days by the bank, this difference is covered by NNW but it is not cash burn per se.
NNW Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
