Ann: Market Update - COVID19, Operations and Outlook, page-176

It’s very quiet on the announcement front.

I still think the stock is mispriced though. I might have a bit of anchoring bias but at 6-7x ACV and assuming nil growth in ACV in perpetuity & SG&A costs remaining the same (CPI adjusted), the company is cashflow positive? Not only is it slightly cashflow positive but c$2m FCFE annualised. Not a tech stock anymore - assume 90% payout ratio (due to tax implications) then 6.9% yield? This doesn’t include the refund either.

This means we would hope to see 835k receipts this quarter and no movement in ACV (ignore currency).

I think that’s unlikely. I suspect the receipts will be 400k as customers will be late in paying & ACV will be 3.6m.