Connexion Mobility Ltd

ASX:CXZ

Connexion Mobility Ltd

ASX:CXZ
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$0.027 (+3.8%)
Last close price
#101
Rank
11
Held by
32
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Reports (9) My Report Forum Investors
Forum Topics CXZ CXZ Meeting Summary

Pinned straw:
ballermania
Added 2 months ago

My summary from the meeting was growth and sales tractions still remains slow, while the costs of their solutions are only a tiny fraction of dealerships budgets, their solutions only help with a tiny fraction of dealerships problems and i can't imagine dealerships have much urgency to implement CXZ solutions.

I'm pretty sure I hold a small amount of CXZ in my SM portfolio but none IRL, as of the now there isn't enough growth, I like what Aaryn is doing and the valuation speaks for itself, but IMO given their lack of penetration ex GM it will take a while for their product suite to be filled out and to gain any meaningful sales traction. I think its too early to get a gauge on the returns of their investments and it will take a 1-2 years before we likely know if they are onto something. I will continue to watch closely and hopefully by the time they can gain some meaningful sales traction and momentum Mr Market hasn't caught on.

Strawman
Added 2 months ago

I agree @ballermania

Aaryn was very modest, and really leaned into the risks and challenges. And clearly (for me at least) has the right attitude towards capital allocation. I also liked what he was saying about developing the right shareholder base and not pandering to some of the pressures from investors

But...contract wins are hard. And they seem to be the smallest player in a concentrated market.

The existential threat from the reliance on GM is a major concern too. Maybe it's a small risk, but if GM walk it's a problem. And even if they don't, the threat of that gives GM a huge amount of negotiating power.

It really is better suited as a private company imo.

I wouldn't bet against them, and a few good wins could really make a big difference. But happy to watch from the sidelines for now.

12
mikebrisy
Added 2 months ago

I caught up with the recording last night, and I agree with most of what's been written about $CXZ.

However, the high reliance on a single, powerful customer and a diversification strategy that I characterise as "hopeful" means this is uninvestible for me.

Of course, I recognise that some momentum on other customer wins could quickly transform the prospects for and value of the business. But I am not prepared to embrace the risk for the chances of that reward. Aaryn still seems to be in a "discovery phase" as to what the way forward is for this business. That's not a strategy.

Good point by @Strawman - this makes more sense as a private business. The costs and distraction of managing public shareholders is of little value. For a <$20m market cap. business to be messing around with share buy-backs as part of capital allocation - while disciplined - doesn't make a lot of sense to me.

Disc: Not held

18
edgescape
Added 2 months ago

Good buying at 1c though

Someone should tell CXZ to stop doing buyback and find a way to use cash to make their products scale to other customers and then spend on winning new customers.

10