Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Exactly one year ago (28/04/2023), ZOO raised 12.5m £ at 160p with institutional investors. Then came a 148-day strike which was the second longest strike in the whole history of Hollywood. ZOO entered that exceptional crisis with a solid balance sheet and will come back in a stronger position compared with its competition. Before the strike, ZOO was on track to reach $ 100m revenue, with long term outlook of reaching $ 400m (going from 4% to 14% market share).
In my (rather long) experience in tech investing, that type of expectations never worked. It is extremely difficult to time the take up of a distruptive technology. There are factors that only insiders of a specific application / sector can understand. Lastly, everybody spoke about fully autonomous cars. It was all done and set by 2025, with Apple, Tesla and Google lined up. And you could find thousands of super convincing videos on social networks. How did it end up ? Nowhere. Abandoned. The focus is now on semi-autonomous cars, sensing interiors etc... So as obvious as it may seem, saying ZOO will be swiped away by AI is in fact a very bold statement unless you work in this industry. Furthermore, even if you hold that position, timing the shift is even more challenging while there is a high likelihood that the company will regain the revenue it had before the strike, which will command an easy x3 within one year from now, imo.