My thoughts on $DAO -
$DAO has been under severe pressure due to widening losses and recent profit warning (higher expenses due to rising sales & marketing costs).
The entire industry is spending like crazy to grab as many customers (paying students) as it can...
$DAO has been under severe pressure due to widening losses and recent profit warning (higher expenses due to rising sales & marketing costs).
The entire industry is spending like crazy to grab as many customers (paying students) as it can...
2)...because companies realise that once students have enrolled, they tend to stay for a long time and their LTV is way more than the CAC.
We've seen this movie play out before in many industries (ecommerce and software).
In fact, in his remarkable book written decades ago..
We've seen this movie play out before in many industries (ecommerce and software).
In fact, in his remarkable book written decades ago..
3)...Phil Fisher opined that the best time to buy shares in a young high-growth business is precisely when such an enterprise is out of favour due to early-stage investments which temporarily hurt profitability.
Well, $DAO certainly fits that narrative and although, I...
Well, $DAO certainly fits that narrative and although, I...
4)...haven't added to my position yet (am down ~40% from my ill-timed entry), am holding onto every single share.
When the selling has run its course and the operating results start to trend in the right direction, may add to my position.
Hope this update is helpful.
When the selling has run its course and the operating results start to trend in the right direction, may add to my position.
Hope this update is helpful.
5) After thought -
$DAO was spun out from $NTES which is an incredibly successful Chinese internet business founded by billionaire William Ding (who still has a big stake in the company).
$NTES still owns 58.5% of $DAO and William Ding personally owns 1% of the o/s shares...
$DAO was spun out from $NTES which is an incredibly successful Chinese internet business founded by billionaire William Ding (who still has a big stake in the company).
$NTES still owns 58.5% of $DAO and William Ding personally owns 1% of the o/s shares...
6)...which he acquired during the IPO.
Attached is the list of the major institutional shareholders; which have started building their positions.
I have no clue when the current selling will abate; but given $DAO's pedigree and prospects, am staying the course for now.
Attached is the list of the major institutional shareholders; which have started building their positions.
I have no clue when the current selling will abate; but given $DAO's pedigree and prospects, am staying the course for now.
7) Finally, these are my *current* thoughts on $DAO which are based on the *current* facts.
If the facts change and the business fails to demonstrate operating leverage, I reserve the right to change my mind and cut my loss.
Happy to remain patient for a while but not forever.
If the facts change and the business fails to demonstrate operating leverage, I reserve the right to change my mind and cut my loss.
Happy to remain patient for a while but not forever.
