The 4C reaffirmed to me how well management has guided the co through this calendar year, strategically pausing on the banking license where most of the companies resources would have been deployed and completing the Emersion acquisition, which is now expected to be a key driver of growth in FY21. Reminder that the deal was $1m cash and 16m shares (SP depressed at the time) appears a shrewd business deal. The co is now EBITDA cashflow positive and cap raising funds in the bank bodes well for 2021.
One thing that does is bugging me is the top line growth, below is the 4C reported receipts from customers for Q1 over the last three years. 2018 $7.988m 2019 $7.533m 2020 $7.727m
Now i get that the reported revenue $3.56m this quarter has climbed due to product mix and cost control improving margins, COVID has impacted the China Payments business and the co is structured differently now vs then but finding additional top line growth might be the missing piece to unlock the EV. Forward looking it has great prospects and with cash in the bank to pursue other acquisitions and grow existing businesses I'm sure the SP will re-rate.
NOV Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
