Hello all. Hope many have had a cracking long weekend, I look forward to another one if I can apply to get a sneaky leave day in before Anzac Day!
Anyhow like a few here, I’ve enjoyed time away from the screens, but as always, it means more catching up to do. Most notably
@Klue who I’d also like to get in line to thank. You’ve contributed so much, and I look forward to catching up on my shell h/w. Thanks again matey
@Sector good suggestion Re soon to be positive cash flow. Unfortunately for me though, I’m probably far too late to the conversation. This sector for me at least lends itself to be tech’s. Because my niche in mining stocks would be in the explorers, not developing/producing stage. Anyhow a few tech’s of note to me personally on a sliding scale I suppose.
LVH – Have mentioned it as a tip before. I held previously but watching for now, but If I see this going back to it’s last CR price of 44c I will be backing up the truck.
@Anton Chigurh rightly mentioned EML, whose rapid rise was parabolic, was based off from memory from a belter of a quarterly where investors could see the rev growth well ahead of being cash flow +. I’ve said LVH will be a unicorn elsewhere and still feel that way. The fact that they had 6m cash in the bank and took another 12.5m at a mere 0.6% discount to 15day VWAP is telling imo. In other words, insto’s wanted in big. Rev growth QtoQ was 75% to get to 225k. Anything near the 400K this quarter will be quite a surprise I feel. To be honest they are probably more than a few quarters of being positive, but many people will be happy to wait if they snag a Westpac like I’ve predicted or any ASX 25 coy as they’ve stated. Based on TCC Growth and I’m hearing it is exponential, it won’t be far off 1m + quarters, possibly either 4Q17 or early 2018, just based on the fact that it is sticky rev.
8CO – Probably most see this as a shell, but very close to being cashflow +, as per last quarterly. As an aside they mentioned in the HY outlook that they ‘expect to continue to drive growth across the business through a combination of growing revenue and strong cost management, resulting in a strong positive operating cash flow’. They are in the process of divesting of Realtors8, which if finalised puts them on a negative EV, even with the CN to finalise. Given how little stock is on offer, it’s hard getting set, but worth a look imo. Will put more detail up in a tip later.
SVT – This one is plain silly, but a result of a poorly handled register. 10m EV and targeting CY17 revenues of over 10m. We await the soon to be released quarterly. I don’t see this one as going cash flow positive in the near term with ambitious expansion plans, however, as a few have noted, it remains possible if they want to slash cash burn and focus on operating efficiencies at the sacrifice of mkt share.
FRE/FSG – Field Solutions RTO. This is a bit similar to the above. Pretty tight, but definitely has the ability to be cashflow positive also. More info on this to come.
Lastly
@Spikerama this one might be well suited to your theme....
RXH – A real woofer for me personally. But I have this feeling that they’re pretty close to getting to that aha moment. Again, it looks more like a shell that is being priced as if the lights are out, but one of my last dogs that I’m happy to back myself in and buy some more, purely based on management. I’ll have some more on this one also at some point when the time is right it’s probably going to be a tip also!
PS
@nytryda I heard it from quite a couple of Uber drivers in Perth about the locals and one property agent being optimistic about Property also, but take that with a grain of salt right! What is it about a tip from a taxi driver signalling the end of something haha! But in all seriousness alot of locals I spoke with in Feb are very bullish about the mining sector. I do wonder, if that was just talking the economy up and not really suprising, but I guess time will tell won’t it.
Anyway, I have a feeling we’re probably going to be seeing quite a few more bargains ahead yet. Here’s to everyone safely navigating through this tricky upcoming period.
And speaking of late…..
