VIV 0.00% 2.5¢ vivid technology limited

I appreciate your insight Martin and I hope I didn't come off...

  1. 7,283 Posts.
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    I appreciate your insight Martin and I hope I didn't come off too short with you.

    If you are a risk-averse investor, then certainly costs may put you off investing in a startup like VIV. By doing this, however, you forego the opportunity to get in on the ground floor of a potentially hugely profitable enterprise.

    Sure, costs may be a reason for you to wait a while, but if you look back at the historical quarterlies - as herbalist astutely pointed out - the revenue growth and customer growth is exponential. The alternative is to reduce costs and slow down growth, in order to make a modest profit, which is going to hamstring the company. This is a long-term game.

    Vivid Technology's lighting business is highly scalable and is being rolled out globally with blue chip clients. Establishing this foothold allows them to expand further, as the energy savings and technology are validated by customers.

    I personally believe startups shouldn't pursue profitability to the exclusion of all else - far better to reinvest in its own expansion and growing the customer base. We are on the cusp of being cash flow positive anyhow, and I expect this will be the case by end of calendar year 2017.

    On the subject of green technologies, perceptions are already being challenged by skyrocketing energy prices and major businesses trying to improve their bottom line. Further to this, the 33% investment in the Israeli New CO2 Fuels company is completely profitable of its own accord, without any extra incentives required, and the economics are therefore compelling to any business. Providing extra profit is the surest way to change perception.
 
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Currently unlisted public company.

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