Company Report
Last edited 5 years ago
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Performance (73m)
21.5% pa
Followed by
67
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#Bear Case
stale
Last edited 5 years ago

Although the narrative is compelling, there are some good reasons why shareholders may not do well.

Even if there is some good sales traction, the owners could take most of the upside through share/options grants and/or more generous remuneration packages.

The business may just not scale well. with rising costs keeping pace with any revenue increases.

Sales may not come in as expected, and even when they do they will be lumpy. Indeed, being cash flow negative and having a fast diminishing cash balance, any disappointment on the sales front could result in a highly dilutive capital raising. Even if sales come in as the company forecasts (with Annualised Recurring Revenue to double in FY18 & FY19), the business will only just turn profitable before its cash runs out.  

This is just a very early stage company and an incredibly speculative investment at this stage.