Yes they missed the cloud boat and had a very rough decade over the 2010s as a result particularly as chose not to seriously engage with Intuit on what should have been an obvious deal.
To be fair though that chart doesnt adjust for the Get Busy spin off (mid 2017) or the sale of Accountants Practice Management Group (and 57c part franked special dividend paid).
Unlike the popular wisdom says timing, not time in the market is everything for an ASX listed micro stock. E.g. My pre-tax (inclusive of franking) return on this puppy is almost 20% CAGR since first bought late 2018 and topped up during COVID.
My buy thesis on this thing now is pretty simple: 1) Legal is worth something but is heavily loss making post development spend. RKN EV/EBITDA and EV/Sales ex Legal is not demanding even if the division is only worth 1.5-2.0x sales. 2) Reckon is part way through writing out the Intuit code in its core biz. Once done the poison pill intuit has on other trade buyers purchasing Reckon disappears.
Eventually this thing will be bought by one of the other players in the space.
RKN Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
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