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clock Created with Sketch. 10/05/20
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Originally posted by deeplyinvested:
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My investing screener has always been to look at well established companies that have a track record of at least 10 years of annual reports that I can look into and make my judgement on. RUL does not fall into that category so I am putting RUL in my "risky" business pile. Let's go through the Buffet & Munger checks which I usually do when I research companies...so DYOR too.Do I understand RUL as a business? I could say yes. Having had exposure in the mining industry I know how mine planning and scheduling works and how much of a pain in the ass it is to do. Always trying to find the most efficient and most cost effective way to deign and program the mining sequence, machines breaking down, finding the shortest haul route etc. When I had a look at their website and their Youtube channel outlining their capabilities I can confidently say they offer a great product. And now that they're trying to create a turn-key enterprise system from various parts of a mining business', the potential for an all-in-one solution is clearly there. From their last report around 2/3 of their revenue is from their Software Division which is now switching to a subscription type of model as opposed to a one time payment. Revenues will become more predictable and customers don't have to fork out huge capital upfront. I am somewhat reminded of Office 365 or Adobe for some reason... Probably one of the reasons I am excited for this business is their transformation to predictable growing revenues. The upside potential is huuuuge! Despite saying this the CEO did state that mining companies have been slow to embrace new technologies in their 2019 report which worries me. They also have the other (mostly) 1/3 of their business as an Advisory arm and i think this synergises well with their software. Does it RUL a durable competitive advantage? Does it have good management? Is the price at a discount? money you dont need
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“If anyone else has any other metrics they use to judge good management please let me know! ”
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