RE:RE:FactThe truth is most small companies will always remain small. They will grow for a years and flatline or worse even decline. I'm okay with owning those companies for a few years while they are growing; however what I prefer is finding the ones that can keep growing into larger companies and just holding them. I sincerely believe BeWhere will grow into a mid cap in a few years.
I don't think investors truly appreciate or understand the investment thesis:
- Massive distribution channel. Do you know how hard it is for young companies to get distributors/resellers such as Bell, Geotab, AT&T, Fleet Complete, etc? It takes many years, if not a decade at least, to build such channels. Big deal if your product is good. If you can't get it in customer's hands then you won't get sales. I can list you ton of companies I've seen mention partnerships with large companies yet that haven't amounted to anything. BeWhere has something very concrete.
- First mover in an emerging market: the market is only starting to take off. As carriers complete the majority of their rollout this year, sales should really take off.
- Proven success in similar smaller market: the CEO has already founded a company in the telematics industry and sold it for ~$40M. With years of experience and being the first player in a market that is 10x larger, he should only do better this time.
- Management is aligned with shareholders. Both cofounders own ~17% each and total insider ownership is ~50%.
- Product is multiple times cheaper and has many more features than competing products: GPS telematics units, RFID tags, etc.
- Also very atypical of start-ups: lean cost structure and well capitalized.
quote=realistmen2016]
Maybe there are some who simply decide to correct their portfolio towards other more profitable assets. BEW is my biggest investment right now but I have to admit that there is a lot of competition in the market right now and that BEW has a gross margin of about 32% compared to other stocks that report a lot more in their margins. I have invested a lot in BEW knowing full well that there are other stocks that make better margins than BEW, but my choice for this company is not just quantitative but also qualitative. (Experience and quality management, many years of experience in their field, a lot of contact in the market, etc .....) Nobody knows the real future of all the stocks on the market is that of speculation, So I let things go, because maybe BEW is going to make huge sales that will come to improve their small gross margin to make a big profit, because it controls very well their operating expenses (very tight management).because [/quote]