Well written post. It's easy to point out (potential) flaws in a business model or to ignore them (ignorance). I see this often on HC.
@madamswer does provide good points towards potential downside risk, however as your post shows there are a lot of positive factors to consider as well and GXL has continually shown strong growth.
Madamswer seems very wary of growth by acquisition (I recall from a RFG thread). Maybe a more risk-averse investor (we all have our own tolerance) or been burned in the past by them.
Personally I'm comfortable in my investment with GXL. Yes there are risks, but those risks are mitigated through many ways and as I've said previously I'm not overly worried about Amazons affect on Greencross. Upside > downside for me. I believe holding long term (years) you will achieve >10% return per year (average) which is acceptable to me given the downside risk. I personally believe it to be undervalued with fair value around $7-$8 and expect SP to move in that direction.
GXL Price at posting:
$5.96 Sentiment: Buy Disclosure: Held
