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12/09/14
11:45
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Originally posted by Gwaihir
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There a few interesting things that strike me about this stock.
The burgeoning growth in Asian middle class wealth, which only going to keep continuing.
The continuing expansion into more Asian countries and growing economies.
The revenue potential of "Living Social" in South East Asia.
Sales increased in all of it's 6 Asian markets in the last 6 months.
The loss for the period was largely generated by the acquisition of "Living Social" - perfectly understandable for any company pursuing growth.
$14 million in the bank at the end of the quarter
$37 million in receipts for the quarter, but what they have to do is get the payments to merchants and the warehouse and transportation costs down.
The full integration will not be complete until the end of Q1 2015 according to the company, so it will be near the end of Q2 2015 or June/July 2015 when you will be able to get a better financial understanding of how successful the company has been, or will be. Which means a 10 month wait, or approximately a 1 year hold on the shares, so patience and vigilance is required here.
We need to keep a close eye on the business for any failings in it's growth pattern, but for now it seems quietly prospective for those with an eye to medium risk.
Gw
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Some great points Gw.
MNZ and SHP have been pretty much tracking in the same direction over the past six months. IBY has performed a little worse.
With the Xmas period coming up in Australia I expect to see MNZ and SHP bounce, but will IBY? A long way from March 24th, but hopefully we've seen the bottom and it breaks the 30c barrier again shortly.