We ran a round, asked some about the company and it seems to me that the answers are pretty selective. They do not respond to the questions related to financials…We shall see whether they willing to say something about these questions before the round closes.
Nova Innovation is crowdfunding on Seedrs again and their shares are opted out from the secondary market. A lot of investors asked why, and they blabling something about negative impact etc. but it seems to me as a megabullshit and really pissed me off. I like this company but technically nothing about financials in their pitch deck.
And the valuation is also messy. They say that "Early stage companies can be valued using forward looking EBITDA multiples " which can be correct but we don't get information from the pitch deck about the actual EBITDA for example the other "estimations" are closer to a random number than the reality.
So I started hesitating about this investment.
Well to be honest I usually do not invest retail companies - except if it is somehow a premiumised product like special alcoholic beverage - because the margins are extremely low. I also do not buy the shares of retail companies. Wallgreen Boots Alliance is a very good example but I can also mention Wallmart for example. And if you have no high margins then scale is everything. If you cannot sell a tons of goods you will not generate income not to mention profit.
On wallmine.com you can check the margins of the companies listed on stock exchange and for example a tech or a communication company has much higher margins then a retail, a utility or an energy. So I'm going to skip Crua Outdoors because of the problems mentioned before.
I heard a lot about this company but after I skimmed over their pitch deck I do not feel that they are so exceptional. Any thoughts about this project?
Maybe we should give us some update about the owned companies. It may help to a lot for other investors.