Ann: 2024 Q1 Quarterly Activities Report and Appendix 4C, page-25

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vivRookie

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13/06/24

14:16

Post #: 74298591
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Originally posted by rahul123: ↑

business wise it has been doing okay. They bought RIMAB around 2021, some with cash and some with shares issues to CEO as it was his company. Its a evolving field so they have to spend on r and d and recently have developed new value proposition ( I have no idea what exactly it is) which they say gonna cater for large institutions. Also have been consistently winning contracts here and there and recently have turned EBITDA positive. BUt the share price have been at All time low . Few issue for these are:
1) Main reason i believe is cash receipts does not match revenue. As for example look at last quarter. Investors are spooked as they might think the customers are not paying as they had some issue with this before and had to cancel one big contract.
2) Since cash receipts are not coming as excepted , cash reserves is on knife edge. so the risk for capital raise exists as they had to do it like last quarter just for working capital
3) third risk i believe is country wise risk. The regions or country they are operating are i think are near third world country so trust issue exist.

Nevertheless i think it is worth taking a punt. Firstly, the sector they are operating is highly growing..look at PME. Second they have been winning contratcs, lots of government, have expanded to mexico which i think is a but more assuring) .Around a year ago they were mentioned in 50 fast growing company. Management have also got decent skin in company . They invested in last cap raise as well. And lastly valuation look ridiculuous. It they manage to get all the revenue i think they are nearly 4 miilion dollar cash flow postive a year. Their market cap is less than their 1 times of ARR while PME is over 100 times PE. DYOR

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good explanation. Contracts coming in. It's cash receipts we want to see before it jumps. Yes, well worth a punt at this crazy low sp.

IME Price at posting: 41.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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