short term trading week starting -21st oct, page-6

Entry for STT ASX:STE

STRATATEL LIMITED (ASX: STE)
Profitable recurrent revenue business model
Market cap $6.7 million
Issue 191m
Cash $3.2m
No debt
Provider of specialised business software solutions
and services.
Core business is cloud based telecommunications
expense management (TEM) solutions
Strategic partnership with Optus in Australia Joint Venture with Major South African Telco Professional Services Consulting, specifically in IBM products and cloud computing.

Stratatel has entered into a Heads of Agreement to acquire JCurve Solutions which have Exclusive software license acquired from Netsuite INC an $8Billion Cloud company which has just established itself as the Global No.1 cloud-based financials/enterprise resource planning (ERP) software company
Netsuite offer “must have” software in the
“cloud” for all business.

Jcurve has 500 clients of which 50% or 250 were acquired in 2013 thats substantial growth
Jcurve expects significant growth as a result of the release of its new GO product Which is expected in this Quarter.
Growth in this market is huge especially when tethered to Netsuite.
Netsuite NYSE (N) 24 month chart

Independent global analysts Gartner say cloud market to grow from US$15 billion to $150 billion per annum globally in the next 5 years

NetSuite have agreed to transfer the term of the
International Reseller Agreement to Stratatel and extend the
license for a further period of 3 years.

Stratatel has been inderpendantly valued at $8.7m to $11.5 million before
acquasition or 4.6c-6.0c
Combined group valued at $9.9m-$12.8million