Why I sold Ecoya

After attending the Ecoya AGM in Auckland a week or so ago, I decided to sell almost all of my Ecoya shares. Here’s why:

I bought Ecoya at 68c, and they are now $1.10-$1.30 (I sold them over a bit). But after attending the AGM it appeared quite clear to me that the original reason for buying, essentially the marketing expertise of Geoff Ross and his team, was no longer valid.

There was no CEO at the meeting, although subsequently the COO Stephen Sinclair was named CEO.

Ultimately, my investment thesis was based on the understanding that Ecoya would be the Business Bakery (and Geoff Ross’s) main focus going forward. This no longer appears to be the case, particularly with the Moa IPO. There was also talk of more acquisitions which is something that makes me nervous.

In such a highly competitive market, it seems Ecoya has lost its only potential edge. Note, that this is not investment advice, so burn your own pots of money! 🙂

Why I sold Ecoya

2 thoughts on “Why I sold Ecoya

  1. Mike Porter says:

    Are you still tracking Xero, you haven’t done a decent article for a while….
    It’s getting more and more interesting.

    1. Yes, need to catch up with Xero. I haven’t looked at them for a little while, so I’ll try to write a post. My current belief is that Xero is pretty fairly priced for the state they’re in.

      But will definitely try and get some time to do an update!

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