And the flip side....
Its core business, groceries, operates on tiny margins.
But much better ones than B&M grocers. Product lines other than groceries, with higher margins, will also, at minimum, help.
Its last mile delivery concept is an enormously complex business that will face competition from established, well financed competition whose infrastructure in place and ability to expand will insure small margins at best.
This seems to me somewhat contradictory. While I agree it is complex, the complexity benefits WBVN b/c it is harder to duplicate. There system is much more modern and efficient for web delivery versus "the competition" you cite. The infrastructure is NOT already in place, as you claim.
This competition has to deliver bottom line earnings growth which are assuming little online investment. Investing the necessary resources to build an online presence would probably necessitate lower short term earnings. +'ing lower share price. ='ing management looks bad.
WBVN's future financing requirements, when they surely do arrive, will likely be very expensive funding from the perspective of current shareholders.
You assume the current financing environment, one radically different than six months ago. Six months from now, could be equally different. Any company showing dynamic growth, with a truly visible road to profitability, and executing on a real-live business plan will not have a problem, IMO. |
