Thanks rj ... a family business? It looks interesting. Eddie’s...

Thanks rj ... a family business? It looks interesting.
Eddie’s son is Cameron?... who was also at FTI?... and they are now ‘coding biology’ using digital tech in a way that enables them to develop petrochemical-identical products without use of petrochemicals?

You sound interesting too, rj, and well-informed in regards NUIX.
Back in early March, (when Nuix had already seen a huge slide in value), an institutional investor I follow a bit, OC Funds (which had been in since the IPO), wrote about it in its’ Premium Small Companies February 28 update; https://www.ocfunds.com.au/wp-conte...-Premium-Small-Companies-Fund-Fund-Update.pdf
It said it was reducing exposure tech stocks generally but reads as if it decided to hold onto Nuix “...as the investment thesis appeared intact and the quantum of the sell-off therefore appears overdone.”
The price looks like it was hovering around $5 at the end of the first week of March so their view of ‘overdone’ must have suffered a bit of a wake up call...

Spoiler : See the OC opinion here

... “Several clients have asked us why technology shares are so sensitive to movements in treasury yields and the answer, simply put, largely revolves around the opportunity cost of capital.
The US 10-year treasury is typically used as a proxy for the ‘risk free rate’ when calculating the cost of capital.
Therefore, when bond yields rise then so too does the cost of capital meaning that any cashflows received in future periods and discounted back to today’s value are worth less.
Long duration growth assets like technology shares often have relatively low cashflow today but are growing rapidly into the future.
Therefore, when the cost of capital increases, these future cashflows are worth less in today’s dollar terms after they are discounted back.
As a result of this dynamic, the valuations on high growth stocks like technology and healthcare shares often fall disproportionately when 10-year treasury yields rise.

The Fund has reduced its exposure to the technology sector since the start of the calendar year.

The share price fall of high growth tech IPO Nuix (NXL) during the month was exacerbated after its first half result underwhelmed investors just months after joining the ASX bourse.

NXL is a global company that provides investigative software which enables indexing, searching, analysing, and extracting knowledge from unstructured data documents.

Its key client’s include governments,law enforcement agencies, professional services firms and large corporates.
NXL’s first half revenue growth was behind the market expectations with management calling out a slippage in US government contracts due to the federal election as the culprit.
The company did reiterate its full year earnings guidance and expressed confidence that the US government spend would likely be captured later in the year, due to the strength of its government relationships.
As a high multiple growth stock, there was no doubt the market was looking for validation in the result that the prospectus forecasts could be exceeded.
Notwithstanding this blemish, the broader long-term investment thesis for NXL appears to be intact and the quantum of the sell-off therefore seems overdone.”

... What is your opinion on this please rj.
Are the government contracts likely to be stable?
Does Nuix still have a unique product?
And do you think FTI will sign up for a continued customer relationship after September 9 or quit the contract?
Do you have any idea of what portion of Nuix business is derived from FTI?

cheers