An oligopoly has various academic definitions that describe the same kind of market structure: an inefficient market with market power concentrated in a small number of firms where consumers are overpaying for the particular good or service at a given level of quality. Overpaying takes various forms including an inferior product being overcharged for, or an OK product commanding a significant price premium due to the market structure (e.g. artificially restricted supply).
I have received quite a few inbounds after my post of 6th October 2020 entitled GrowthOps – FY20 in Review asking for a more specific analysis of the Company’s cash position and different possible valuation outcomes. I’m going to spend a bit of time in this post on valuation considerations and come back to cash position in a week or so.
Trimantium GrowthOps Limited (ASX: TGO) is one of the most poorly understood stocks on the ASX given its sustained revenue (over A$80 million p.a.) and client profile. The vast majority of the online coverage of the company is either 1) ad hominem attacks against me or key people, 2) deliberately misleading to the point of market manipulation or 3) automatically generated content by content algorithms.