It’s the last day of 2023, and probably not a bad time to...

It’s the last day of 2023, and probably not a bad time to reflect on the year.

It’s been a horrific year for my portfolio of mostly microcap tech stocks – including Pointerra which started the year around 19 cents & finished the year at 4.4 cents (down around 76% from my calculations).

And I am sad to report that Pointerra wasn’t even my biggest yearly loss – and I had 6 stocks (out of a total of 16) lose upwards of 55% for the 2023 year ☹

I tend to buy & hold though (where possible) – so with inflation subsiding & central banks potentially looking to start cutting interest rates next year, I am now fairly optimistic about the outlook for well managed microcap tech stocks.

With Pointerra, I still expect this current quarter (Oct – Dec 2023) to probably still be a little underwhelming, but Q3FY24 should start to show strong signs of growth again – particularly from these potentially large revenue generating areas:

Amazon / Velociti

The first South American client – Enel Colombia

The 2 x large global mining clients that has been mentioned in recent reports (maybe Rio Tinto & Anglo American???) – as management have mentioned they are now starting to significantly increase their spend.

The large Entergy pole inspection deal announced a few months ago – once started, hopefully this Entergy program paves the way for other utilities to use Pointerra’s platform for their grid resilience & pole inspection programs.

3DP’s large US utility companies resuming their spending (eg NextEra / FPL).

New partnerships like Emesent (using their global sales team to directly sell the Pointerra platform) and Carbonix.

Work continuing with the major Australian water utility & the large oil and gas companies that have also recently been mentioned.

The two Chief Growth Officers accelerating their customer wins.

Obviously it is now very difficult to predict how 2024 will turn out.

However, management have grown Pointerra’s revenues from $443,000 (year ended 30 June 2019) to $9,801,575 just 3 years later (year ended 30 June 2022).

Before revenue slipped back to $7,331,188 in the financial year just gone (year ended 30 June 2023).

So revenue growth in the last 4 years has still increased significantly from $443,000 to $7,331,188 – even allowing for all the issues encountered with inflation / interest rates / large customers pausing their programs in the last 12 to 18 months.

Whilst last year was clearly a step in the wrong direction, I am reasonably confident that Pointerra is now heading into another growth phase – and that the commentary & numbers in 2024 will show this.

Hope 2024 is a ripping year for all 3DP shareholders