@Bear77

"if it just boils down to price then I fear they are never going to be a highly profitable company - their margins are going to forever remain under pressure. "\

I wholly agree with your sentiment on Booktopia as a potential investment.

Great product, I use them all the time -- however;

This business trades at a MC of ~$180m and produced a not-so-nice looking cash flow statement, as follows:

To me it would seem the economic conditions brought on by covid have created an optimal environment for the business to produce strong financials, however it doesn't seem to me that this has occurred.

With a 2021 underlying EBITDA of 13.6$m, it's on a backwards EBITDA/MC of some 13x. (Perhaps I would get interested at ~7-8x)

For context, I have done about 5 minutes of DD so I could easily be proven wrong however it doesn't seem to warrant any more of my time as I would not invest.

In short -- too competitive, no track record of value creation, not priced attractively to offer any sufficient value to me.