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  5. WNDR: Hi All at 5I! [WonderFi Technologies Inc.]
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Investment Q&A

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Q: Hi All at 5I!!

What are your thoughts about WNDR at this point in time ( 6mths after last question on it). Would initiating a small position seem reasonable to you?

Cheers,

Tamara

Asked by Tamara on August 20, 2024
5i Research Answer:

Considering Crypto has done well this year, WNDR's 43% YTD decline is a bit surprising. BUT, it did miss recent revenue estimates by a wide margin, and small caps have struggled generally. Our earlier comments still apply. It has $37M cash now and is expected to show a profit for the fully 2024 year. Cash flow has been negative historically. WNDR is continuing with its crypto-asset buying program. This is a tough call. There is potential here, and we do not think management is doing anything 'wrong'. But its small size limits interest, as does its revenue 'miss'. It has the balance sheet and expected revenue growth does look good. We might be OK with a tiny position for now with a view to watch it for improvements over the next few quarters. It certainly should be considered higher risk.