G'day everyone!!
Been a pretty tough week or two in micro cap land, and hopefully today was much better for everyone's portfolios.
I only have basic knowledge about what they are, but bond yields really suck when they are increasing
Regarding the ACV numbers for K2F and 3DP, I can't find any updated figure from K2F, but from what I can gather:
1. 3DP - ACV at 29 January 2021 was $6.88m USD (approximately $9.0m AUD)
2. K2F - ACV at 29 January 2021 was around $2.55m AUD
Since then, K2F have announced deals with Rio (ACV approx $240k pa) & Couer (ACV approx $115k pa) plus the Decipher acquisition (ACV approx another $300k pa).
So guessing that K2F's ACV would currently be around $3.2m AUD - which is approximately 35% of what 3DP's ACV was back on 29 January 2021.
Not sure where 3DP's ACV will be now - but that should be revealed sometime in the next few weeks.
3DP has a much higher current ACV than K2F, it's growth rates are currently much higher (over 200% pa versus approximately 50% pa), and 3DP appears to have a strong chance to land some massive $ amount contacts (although it appears that Sateva & Decipher might really assist K2F in this area).
Management in both companies are super trustworthy & highly skilled, both companies have global operations, but clearly the market caps are vastly different at the moment - approximately $500m (3DP) compared to just $34m market cap for K2F.
I have gone in pretty hard with both companies, really like both companies going forward, and I haven't sold any shares in either company yet.
As another poster mentioned in the past day or two, I think K2F's market cap will get a huge re-rate once they announce just one good sized contact - say anything upwards of $500k to $750k AUD per year.
When combined with their amazing global client list & really solid management team (love listening to both Brian and Nic talk) & rapidly expanding product suite & existing very solid growth numbers & the business already being cash flow break even / cash flow positive, one solid contract amount will really set the K2F SP alight IMO.
Given the $ they paid for Sateva & Decipher, and given the information contained on page 22 in the 3 March 2021 presentation, the large contract will come from the "ground disturbance" or "drilling and geology management" area of K2F 's business.
And hopefully we won't have to wait too long for that nice big fat contract to arrive.
