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Added 3 weeks ago
##Revenue growth

A pretty exciting 4c IMHO,

Although I am sceptical that they can acheive it, if they can keep growing revenue at this rate then operational cash flow will be positive by next quater.

 

 
Last edited 5 months ago
#Directors Pay

I have been having a read of the annual report today and I noticed the Kain brothers paid themselves a combined total of $465,000 last year. I am not sure if I am being over critical, and I understand they have taken a big risk and probabally work hard. But for a company of this size, who is borrowing money at a premium and burning cash, this seems like they are cashing in a bit. The total revenue for the year was only 600k. The company should concentrate on remaining solvent and generating a profitable model before they hit the large paychecks. I understand that you have to pay well to get tallent, but I fear they are milking the company dry before proving their worth.I really like the companies strategy and feel they have made genuine progress, I just don't want to see it driven into bankruptcy buy greedy directors. I understand if they took a pay-cut it could negatively effect sentiment, but I feel at this stage it would show prudent financial management.

I really want this company to succeed and I hope I am wrong, but I feel we need to be realistic. I am interested in others opinions here.

 
Last edited 3 months ago
#Microfinancing

I have attached the link to the AGM presentation below.

PIL are now moving into microfinance as part of the Bizmoto program. Although Bizmoto has a large suite of products for a small company I feel they fit in well together. There has been good growth over the last 12 months with the bizmogo delivery and the bizmotinda online food ordering.

I have mixed feeling about this company. I really like the business model, my issue is with management. The company burns alot of cash, and for the past 12 months a $1.5m share placement at a significant premium to the market price (2.5c placement adverage price around 1c) has been promised from a funding company called PEGG. Although every announcement the money has not come just excuses (e.g. regulatory holdups), so the company has been using existing debt facilities instead. The company is now in a trading halt for what I understand to be the funding not coming through and the auditor for the annual report signing off that the funding was required for the company to be a going concern. Albert Cheok runs PEGG and has an impressive history, he recently got a seat on the board which I saw as a good sign, then this announcement mentioning the payment is delayed again and a seperate $1.5m capital raising is happening aswell. I hope I am wrong I just feel there is something in the background here and the lack of transperency is dissapointing. Other than that though it is an impressive presentation, and a great business idea.


https://www.asx.com.au/asxpdf/20191202/pdf/44c6t5sj0x1sl0.pdf