E88 margins are negative at the moment. So are most internet website stocks, which is no excuse but we are talking SP.
They were said to have 780 staff I think they are spread over a few countires with the main office in Singapore. The staff numbers show they are a bloated group of seperate businesses, the potential is enormous to combine these into one or two locations with the same staff working on all the Ensogo brands off the same platform. I believe this will reduce costs substancially.My criticism of the management as to why they didn't do this number one priority after listing a year ago instead of asking for more money from investors to buy living social.
They have massive room to move to reduce costs and I have read this is now a priorty. If they can also gradually increase sales which looks very likely then profits will come by the end of 2015 hopefully sooner.
Some of us also feel like we were treated like fools last quarterly with the shoddy explanation of the $5.2million upfront payment to suppliers. Does anyone understand this payment and why not show us the respect and show a detailed statement of the transaction. If this turns out to be a sound decision but poorly explaines then It could be a great move by the company in the long term.
E88 Price at posting:
8.2¢ Sentiment: Buy Disclosure: Held
