Im also in both, but am not overly concerned about either as they are both together under 10% of my portfolio. If I were a betting man, I would prefer PEB as well.
Printable View
Bit of a problem in that as one of the conditions of MacDonalds taking a stake in Plexure was that Plexure were not to sign up any more fast food chains. White Castle got thru because negotiations started before the Maccas purchase.
In my view Plexure is walking a tight rope. The MacDonalds restraint is not very helpful which is what was intended of course.
Disclosure - Plexure was a profitable investment but I am now out totally.
Combined PX1 group is $60M revenue with solid growth prospects...
That's an interesting point. My understanding is there was a specific list of companies they could not work with, which I assumed to be the likes of burger king, KFC, pizza hut etc. I wonder if Starbucks are on the list?
Certainly wasn't a blanket ban as we can see from the recent pitta pit deal
Up as the opening of borders should lead to increaes in revenue from main contracts. Will be interesting to see if they can add more Supermarkets F&B customers.
You might be right as that would explain Pitta pit. I interpreted it as a blanket ban. I thought that McDonalds would be moving to protect themselves against future competitors - even the guys that do not exist yet. My concern still remains as the big guys are off limits and since we have not seen any traction in the supermarket business I think that it is very hard to see where the growth can come from.
Long story on Plexure in BusinessDesk
Lots of comment from Forbars. They still have a target over $1 but only because current price is oversold or something
Pretty downbeat on merger
“We have yet to be convinced that the Task business model will create value for Plexure,” they wrote in a research note.
Might be paywalled
https://businessdesk.co.nz/article/m...cape-mcdonalds
Forbar & others finally waking up now to the fact that McDonalds has got PX1 by the short & curly - expensive to service contract with no scope to leverage into other fast food players.
Seen it before with IBM who used to do similar deals until the servicing companies were about to go broke & IBM then bought for a song.
PX1 and IKE have the same core issue:
The customers are big corporate entities mostly not individuals. The corporates have teams to negotiate these deals and drive a hard bargain. Difficult job as the smaller entity to Get a good deal.
Disc: hold IKE, sold PX1 as Task takeover changes the story (maybe for the better but I'm not sure about it so better sit it out).
Yes, I sold out of PX1 after the CEO resigned but still holding IKE. The PX1 story sounded good to me initially but it just hasn't matched up with reality I don't think. Where is the evidence anyone substantial really wants their service at a price PX1 can make any money on the deal. At least with IKE, the service is obviously sought after and the contracts profitable.