Q: It has been a couple of years since an ECOM question. No doubt still high risk but has the risk reward profile improved enough to justify taking a position in this company. Thank you
5i Research Answer:
ECOM is up 118% in the past year, yet market cap is still only $18M. Just its size means it remains very high risk, essentially speculative. Its sales base is actually half of what it was in 2022. But, it has reached (small) profitability and positive cash flow. This makes it slightly less risky than before, but we do not like the sales trend. It still has no analysts. It has a small amount of net debt. Insiders own 16.5%. We can still not really endorse it.