samir_brd:
Why do people have so much faith in what the Repro Management claims? They have changed their business model many times.
First, there was this whole thing about export of printed books to Africa and so on. This seems to have worked for a while, and then fallen flat, with high account receivables and declining sales.
Then, there was this whole about Rapples and E-Learning. Anybody with a semblance of intelligence would have recognized that this was a business which was likely to bleed for a long time (and one which requires long term VC type funding). No wonder the business model has sort of been abandoned.
And now there is books on demand. Where is the traction for books on demand? Indeed, all over the world, printed books are rapidly going out of fashion. And what is really special about books on demand? Who will make the money? The publisher, the copyright owner and the online book seller. Why should a simple operation like printing make real money in this?
I started following Repro about 3 years ago. In these three years, the company has shown zero growth, severe drop in margins, net losses. I think instead of some vague bet on technology (which may or may not play out), there are better buys out there.
There is of course, the chance that the technology of BOD actually gets traction. In that case, it will be reflected in the financials, and there will be a long runway in which one can buy. By passing this today, you only lose some opportunity cost. But by buying today (or not selling today), and seeing BOD fail, you are risking severe capital loss. This emperor has really no clothes.
Read this twice
Can someone ask mr.vijay kedia to stop misguiding small investors …repro is a good company with decent management but this figures are not justifiable…
