I also thought this looked interesting based on it being cashflow positive, having a supposed growth runway and praise from Merewether but digging into it some more:
- It relies on a mix of hardware and software; difficult for it to be as scalable / high margin / high growth as a pure software business. SKF and SP3 come to mind as similar in this respect, although SPZ's product is probably more essential to its customers
- There is no special IP. The business installs cameras, runs number plate recognition software, requests details of rule-breaking drivers and attempts to collect cash from them. Others can do this - in my city there's at least one other operator that appears to do the same thing.
- Contracts are not lengthy- Aside from installing new cameras, there is little to stop carpark owners taking the best alternative competing offer once the contract expires.
Easy to imagine a scenario where SPZ and competitors have to pay up front or share revenue with the carpark owner.
- Regulatory changes are an ever-present threat
So overall I had no reason to expect that SPZ's revenues would be as sticky, high margin and inherently fast-growing as a pure software business. Other beaten down tech microcaps are more interesting. Happy to be proven wrong or shouted down.
- Forums
- ASX - By Stock
- SPZ
- Ann: Appendix 4D and Interim Report
Ann: Appendix 4D and Interim Report, page-12
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SPZ (ASX) to my watchlist
|
|||||
Last
57.0¢ |
Change
-0.005(0.87%) |
Mkt cap ! $204.3M |
Open | High | Low | Value | Volume |
58.5¢ | 58.5¢ | 57.0¢ | $12.80K | 22.21K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 164 | 57.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
57.5¢ | 14234 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 164 | 0.570 |
1 | 14 | 0.565 |
2 | 6571 | 0.560 |
3 | 10984 | 0.550 |
1 | 10000 | 0.545 |
Price($) | Vol. | No. |
---|---|---|
0.575 | 14234 | 1 |
0.580 | 12647 | 1 |
0.585 | 15003 | 2 |
0.590 | 30995 | 2 |
0.595 | 21143 | 1 |
Last trade - 11.32am 16/08/2024 (20 minute delay) ? |
Featured News
SPZ (ASX) Chart |
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & Managing Director
Charles Armstrong
CEO & Managing Director
SPONSORED BY The Market Online