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$6.35 nuix limited

Ann: 1H23 Results Update, page-28

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letsrobAbank

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14/02/23

12:51

Post #: 66236178
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Originally posted by tjames85: ↑

I've always thought the Sheehy case was a sideshow (albeit a fairly significant one) to the core issues that Nuix faces as it battles for survival a) it doesn't have sufficient cash to deal with adverse outcomes on the ASIC litigation and class action; and b) its much touted "operating leverage will work against it as revenue declines and each round of cost cutting further compromises the company's ability to support and maintain its existing client base (let alone invest for growth.

In previous posts I've pointed to the fact that the company is burning around $10-15M per half and around $25M per annum. That means it has just over 12 months runway unless it 1) cuts costs thereby further compromising its ability to support its clients and grow; or 2) raises capital or debt which I very much doubt it can do with all of the legal overhang that remains along with a declining business (only vulture like investors would be interested at all and you can imagine the onerous investment terms they would seek).

If ASIC or any of the Australian government clients were to drop Nuix it would be on a slippery slope to oblivion - its global regulator client base would abandon it quickly followed by all of its major corporate clients and the global list of advisory and legal firms that service them.

I had a look back at the prospectus and on page 104 it talks about Nuix's "industry centric land and expand strategy". At the heart of this is its market share of corporate and tax regulators. it's presence with the likes of ASIC and ATO seems to be key to Nuix's push into corporates. In their own words, to "position Nuix through education and marketing as a "must have" technology integral to enterprise data architecture". If ASIC and the ATO are no longer customers, why would corporates use them (or at least as much of Nuix)?

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Mind listening to the different voices?

https://**.st/stocks/au/software/asx-nxl/nuix-shares/news/companies-like-nuix-asxnxl-are-in-a-position-to-invest-in-gr/amp

NXL Price at posting: $1.09 Sentiment: Buy Disclosure: Held
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Ann: 1H23 Results Update, page-28

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

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Buxton projects new graphite province discovery at WA Narryer play

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

BCI reaches close of funding facility for salt-first part of Mardie project

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Ann: 1H23 Results Update, page-28

Top Stories

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Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

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Buxton projects new graphite province discovery at WA Narryer play

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

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