Fred Liu’s Hayden Capital has penned an in-depth write-up on Zooplus (ETR: ZO1), a number one on-line retailer of pet meals and provides in Europe.
They see a return of round 20% per yr as the corporate has 50% market share in its class and is the low value supplier.
Hayden notes the corporate’s 94% gross sales retention fee and 31% annualized gross sales progress since 2010.
As far as dangers go, they cite what any retailer fears: the looming Amazon (AMZN) menace. Hayden counters that AMZN’s European distribution facilities aren’t outfitted to deal with heavy, cumbersome gadgets and factors to Chewy.com’s success within the US market.
Also, Hayden acknowledges that there’s a point of ‘key man’ danger right here as CEO Cornelius Patt has been a ‘visionary’ and dropping him can be an enormous detriment.
Embedded under is Hayden Capital’s full thesis on Zooplus:
You can obtain a .pdf copy here.
SOURCE: market folly – Read complete story here.