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A2B - A2B AUSTRALIA LIMITED


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  • 3 months later...
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Yes got stopped out on this trade only to see the price reverse and put me well in profit if I would have still held.

 

Now I see a few contracts didnt come though and the market has sold it down.

Not eager to jump back in with negative news all around but will be watching.

 

Where do you see support Arty?

 

CS

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  • 3 years later...

Uber is among the highest valued technology start-ups in the world, if not the highest, while Cabcharge is losing its domination, and its shares have fallen in the region of 80 per cent in the past eight years. So, why would anyone prefer to invest in a company that is losing market share to one that is gaining market share?

Admittedly Uber is sexy; while Cabcharge is the antithesis of sexy. But sexy doesn't always mean super profits. As an investor, what you are looking for is returns you can bank. And right now, Cabcharge is producing the kinds of free cashflow that make the unprofitable Uber look undesirable. In the first half Cabcharge's operating cashflow was $21m and its capital expenditure was $8m, which was mainly on new technology.

 

..... But the Australian taxi group is far from dead. It has almost 7350 affiliated taxis and processes a third of all taxi payments, worth $1.1bn in fiscal 2015.

 

Uber and similar technologies have not yet had much impact on the market. .... even if Uber achieves domination, rather than virtually ubiquitous as it is now, Cabcharge will be one of those left standing as the industry responds to recent electronic payment fee cuts.

 

The bottom line is that Cabcharge is trading at close to its net tangible assets, has been reducing its debt and is delivering a yield of close to 7 per cent.

 

There is also its bus business joint venture CDC, which isn't sexy but is by any standard a good earner: a bus drives along, and people pay you their cash. The JV reported revenue during the half of $100m and earnings before interest and tax of almost $30m.

Richard Hemming is an independent analyst who edits www.undertheradarreport.com. au
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  • 5 years later...

On 30 November 2018, Cabcharge Australia Limited (CAB) changed its name and ASX code to A2B Australia Limited (A2B).

And the taxi industry has been hit hard by 2 forces; the rideshare economy (Uber and others) and then Covid lockdowns.

But it is still operational, and has some upside as there are property assets which could be developed

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