Ann: PME signs A$40M - 7 year contract with Intermountain Health, page-24

Great to see PME has clearly reached a tipping point of adoption where the number of major sites taking it up is accelerating. These sites will make the sales proposition. Even easier to future sites in the pipeline.

from a product point of view, as a doctor with a special interest in imaging research, I know they are in the box seat for a long runway of clinical innovation because medical imaging is moving towards larger file sizes and embracing AI. This shift is literally in its infancy and has a multi-decade runway ahead.

Margins will expand as each new contract is signed.

pricing this stock on a p/e basis is like pricing google/ alphabet on its p/e 10 years ago, it just doesn’t make sense.

the only way to value it, is to look at the Size of the addressable market in 10 years, the likely share of that addressable market that PME will hold and the margins that they could expect at that time. Considering they have no debt and are unlikely to dilute equity unless for synergistic earnings accretive acquisitions, I suspect the key investment question is not one of fundamental valuation but of their probability of achieving market dominance and they are looking increasingly likely to achieve that by virtue of signing some of the world’s top institutions. They will over the years be honing Their skills at negotiating and signing deals with nhs uk health networks, Australian district health services etc one by one around the world and so as long as they are amongst the world leaders I. their field, they will be highly cash-generative.

hence I won’t be selling any regardless of the sp. I’ll ignore the sp, and just watch the new contract announcements and the financial reports. If there is a sustained decline in the rate revenue growth over successive periods, thats a game changer in execution and then I’m out early.