Based on the initial market response (SP back to $1), this stock and the strength of their financials clearly remains misunderstood by the market. Writing $42 m of new contracts in a single year says that the trajectories since introducing the subscription model are very much in tact. Perpetual licence business still contributing ($6.9m) + a recurring maintenance component ($1.5m).
Expect FY results will show continued cost containment and with the portion of subscription Rev applicable FY2020, expect a very respectable profit for the year. My price target of $1.56 stands.
We then enter FY2021, with 3 years of Subscription Revenue banked. What a platform !!
Rokewa
RUL Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
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