Concierge gives you timely BUY and SELL alerts on ASX-listed stocks
What’s not to like about Mad Paws (ASX:MPA)? It is one of the few ASX stocks with exposure to the pet market and is seemingly immune to inflation – at least, if today’s trading update is anything to go by.
So, why is it down over 50% since its IPO and hardly budged today?
Mad Paws releases a solid trading update
As FY23 draws to a close, Mad Paws released a trading update. It is expecting $24.5-$24.5m which would be up 146% on a reported basis and up 60% on a pro forma basis.
Whilst so many other consumer facing stocks are reporting downgrades left right and centre as consumers cut back their spending, Mad Paws is going in the opposite direction.
So why are investors seemingly tone deaf to this company? It is down over 50% since its IPO.
Top line good, but the bottom line…not so much
Without giving specific details, Mad Paws boasted that it had seen continued improvement in EBITDA margins and was on track for EBITDA positivity in Q1 of FY24.
Investors seemingly are in the mindset of Charlie Munger.
Not a word was said about (proper) profitability.
Still, Mad Paws told shareholders there was a lot to look forward to. In particular, it boasted about plans to expand its Pet Chemist range and a new website. When (or indeed if) it will make any difference to the bottom line is anyone’s guess.
Stocks Down Under Concierge is here to help you pick winning stocks!
The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!
Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target, a stop loss level in order to maximise total returns and (of course) we tell you when to sell. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.
Our performance is well ahead of the ASX200 and All Ords.
You can try out Concierge for 3 months … for FREE.
There’s no credit card needed – the trial expires automatically.
Why do ASX companies raise capital at a discount? This is a question many investors ask when they are diluted…
Airline stocks and fuel prices: Air New Zealand (ASX:AIZ) and Qantas (ASX:QAN) investors just got a painful reminder about the aviation industry’s biggest cost
The relationship between the performance of Airline stocks and fuel prices has seemingly been forgotten in the past couple of…