iFAST

[Curiousparty]

Most of today's large tech companies, like Amazon and Google, get to their present humongous market value and market power by:

1) Providing as much value as possible to the customer. This meant sustaining losses during the early years, and only making a meager positive return in the later years. Debt and equity were sold to finance expansion and better user experience.

2) Having the right people who not only possess the strategy and skills, but more importantly, the patience/endurance, to do whatever it takes to deliver the above.

During their early years, it was never obvious that Amazon and Google will eventually be leaders in their present markets. They had their worthy competitors (ebay and yahoo). And they weren't raking in big bucks. An investor in either companies during their early years had to endure plenty of uncertainty, for the following 10-15 years, before seeing their emerging market leadership.

Perhaps i should add that if i am of the opinion that if ifast sticks to its existing business, it may just have a better chance of making money. But i also find its existing business too small to have a significant scale in the long run. As for management buying back its own shares, well i think many of them are better at running the business than making investment decisions

Just curious, what do you mean by "too small to have significant scale in the long run"?

it is easy to give textbook answer.

Like what I said, if iFast's business model is "too small to have a significant scale in the long run", it would have been mired in heavy losses in the initial years, and would not have survived so many world crisis (starting from dot com, SARS, GFC and COV19).

The business can even generate reasonable dividend (for time being) while paying off heavy capex (details in AR) and maintaining a NET CASH position.

Just pray hard that no big time investors (Shark Investors) come in and offer few hundred mils to take iFast private on the cheap, when it is easily worth a few $bil in the long run...