Ann: Material Contract Award, page-93

@ writer - g'day again!!

That is always a very interesting question - and in my experience it always tends to "throw up" really interesting answers.

If looking to hold a relatively small market cap stock for 5+ years, I generally start with the obvious:

Strong management
Good product
Growing revenues / demand
Huge TAM's - working across multiple industries / sectors.
Preferably already selling into multiples markets (eg Aust & US & Europe / UK)
Some form of intellectual property protection.
Cash flow positive (or close to) etc etc

But to narrow it down to holding just one company for five years - then I would like this company to also have:

Extremely ethical & energetic management.
Great & evolving & world leading products.
Rapidly growing revenues.
High gross profit margins.
And low fixed overheads.

As a larger company on the ASX, PME (market cap of around $6b) immediately springs to my mind when looking at this list.

PME always seems to report a decent revenue % increase - but then the gross profit margin & nett profit margin increase tends to be a significantly higher % increase than the revenue % increase.

Now that is a business that is scaling very well.

Having held Pointerra for a few years, and continuing to top up when prices seem too cheap (like now ), this is very clearly my largest holding.

As I believe 3DP has pretty much all of the above traits - and I think this is a business that will be extremely profitable at scale.

Obviously there is still some risks associated with an investment in Pointerra, particularly with regards to cash receipts catching up with ACV levels, but every new contract announcement clearly de-risks the investment.

And as others like @SuperWealthy & @equityinvestor have said, the last announcement also showed that the sales cycle with larger companies (like Entergy) can now be just a few months

That was great news - as the sales cycles with larger companies have been quite drawn out prior to this.

Sorry for the very long winded response, but Pointerra certainly ticks a lot of boxes (and probably all the boxes) for me to name it as the one share in my portfolio that I would hold for another 5 + years.