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timble. the izettle acquisition is not comparable which I have...

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dubspec

1,924 Posts.

38

02/09/18

13:09

Post #: 35356883
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Originally posted by Timbel ↑

Some positive commentary coming from the outlook which is aligned to the investor presentation provided on the 6/04/2018.

A consistent message around the forecast of recurring revenue doubling from 2.0M to 4.0- 5.0M in 2019,and becoming cashflow positive in 2019 is significant.

Although investors would have expected a better overall result for 2017/18 in particular for revenue and profitability, analysing the results closer in the statutory accounts provides some comforting insight leading into the 2018/19FY. Real revenue growth that is recurring is a key element of true enterprise value, not once off non recurring which only helps with profitability in the short term.

The consistent message around aiming for a cashflow positive result for FY19 is a real positive and I believe will be a catalyst for a market revaluation in the short term. We can see evidence of the focus of the company in moving to this position by the recent restructuring resulting in a saving of $200K in headcount costs in the last quarter's report. In terms of revenue the focus on direct to market customer acquisition will provide a higher profile and growth in their recurring revenue streams.

It is also noteworthy to see that their partnership with BNZ has been and continues to be very successful. Expanding the portfolio of services now to include online transactions with BNZ is a real positive. Although a slow start in Singapore with NETS, if they are able to replicate what they have done with BNZ in Singapore this will be a significant.

I am guessing with the Malaysia OBM bank deal that due to compliance and regulatory requirements this has yet to convert to a contract. Once this is done however I believe there will be a steam roller effect on other banks in Malaysia joining with Mint as OBM is part of the NETS Singapore consortium with DBS and OCBC the other large banks in the NETS consortium... I can see these guys watching developments in Singapore closely before they join the action in Malaysia.

Holding now $7.3M in cash as at the end of Aug-18 in the bank and forecasting to be cashflow positive by the end of FY, there is plenty of firepower here to spend on marketing and sales to boost revenues and significantly increase the market valuation of the company over the next 12 months.

It is also significant and important to note that the top 20 shareholders hold over 70% of the stock in the company. They have kept the faith for a very long time.

A recent transaction with Paypal purchasing iZettle paying $2.2B for transactions processed worth $6B! An equivalent valuation for Mint in this regard given transactions processed of $600M will be 10% of $2.2B which is equivalent to $220M. Allowing for US exchange rate differences even at half this value, the company would be worth significantly more than the current valuation of $20M at the current share price not taking into consideration $7M in the bank. I can see why there is minimal share selling at these prices.

For me personally I have been a long term holder and I can finally see the turnaround happening this year with plenty of upside from a revenue perspective, cutting edge technology, and a focus on costs and becoming cashflow positive. No way I would be selling any shares now, I am holding back for another few quarters to finally see the turnaround!

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timble. the izettle acquisition is not comparable which I have commented on previously. also, it's great for that you are excited about the future on the back of the company's comments but the proof Is In the pudding. I would love to know how theIr contract extension negotiations are going with Tramada as I am hearing things around the traps. also, I criticised a recent report of mint's showing flight centre and hello world logos in their report. I think they put these in there to look good rather than mint actually doing business with these companies.
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