Very interesting! The debt will be a drag but looks like it could be a huge opportunity long term. Out of curiosity, why does a oil company (Orlen) have community lockers?
Thanks! Honestly I don’t think the debt is that much of a deal. What’s PL 3.7 billion of debt when you made PLN 2 billion FCF in 2023 and PLN 3 billion FCF over the last 12 months? The company is growing and not paying dividends. For me, Allegro is a good long term stock and with the recent decline it makes for a compelling case (that’s why I wrote about them haha). On Orlen: The new polish government has done what most governments do with state controlled enterprises. They invest moeny into all kinds of industries and went all in on CAPEX. That’s the reason why I also (sadly) sold the stock months ago. I don’t know whether you saw my post on it back then. Anyways, Allegro is partnering with them now, but I have to say that the relationship isn’t of large significance for the operational business. It’s beneficial sure, but not necessary in that sense. It’s good however to have relationships into the higher positions of the government.
Very interesting! The debt will be a drag but looks like it could be a huge opportunity long term. Out of curiosity, why does a oil company (Orlen) have community lockers?
Thanks! Honestly I don’t think the debt is that much of a deal. What’s PL 3.7 billion of debt when you made PLN 2 billion FCF in 2023 and PLN 3 billion FCF over the last 12 months? The company is growing and not paying dividends. For me, Allegro is a good long term stock and with the recent decline it makes for a compelling case (that’s why I wrote about them haha). On Orlen: The new polish government has done what most governments do with state controlled enterprises. They invest moeny into all kinds of industries and went all in on CAPEX. That’s the reason why I also (sadly) sold the stock months ago. I don’t know whether you saw my post on it back then. Anyways, Allegro is partnering with them now, but I have to say that the relationship isn’t of large significance for the operational business. It’s beneficial sure, but not necessary in that sense. It’s good however to have relationships into the higher positions of the government.
Sorry for the lengthy reply 🫡😂
Thank You!
Your welcome ;)
how do you analyze the risk that amazon moves into eastern europe?
Amazon is present in Poland for years already and isn’t really a competitor to Allegro in terms of size.
“With 15.6 million monthly visitors, amazon.pl is well behind market leader Allegro (214 million)” — globaleyez
Great read! Definitely one for the watchlist
Thanks mate 🧉