Originally Posted by
Dentie
Yes, a shame some Kiwi's only look for reasons not to invest in a company. In fact it is a pity they can't see the real story. I am sure there are more sophisticated "external" investors who understand the PEB story and who will buy into PEB once we can push the SP down enough for them.
For example...we always seem to talk of "cash burn" as if it is a bad thing .... putting cash into a black hole with no returning yield. Most of the cash seems to be going to the sales and marketing - which of course is needed to generate the sales. The User programmes take up cash also, but again this is required marketing. The yield will come over time. This is what "investment" is about. Based on some of the comments - how many see their investments into the likes of Kiwisaver as "cash burn"? I would much rather be invested into PEB.
Also, that capital raisings are a bad thing too because they only dilute the other holdings etc. Please tell me how a growth orientated company is supposed to find the necessary capital to fund that growth? It is impossible to do it from the sales revenue in the early stages so apart from winning some grand lottery, there is only equity (capital raising from shareholders) and debt (borrowing from a finance source). Why would you weigh down the company with interest payments while it is trying to grow? This is an absolute no-brainer!
As a shameless self confessed contrarian investor (with an independent thinking brain), I am more than happy with where PEB is and where they are going - based on what I know today. I know the short termers will feel frustrated at the perceived lack of progress ... but good things take time.
As for the SP...I couldn't care less where it is for the next 2 or 3 years...unless something unforeseen happens in the meantime.