Translation: Dutch (automatically detected) » English Few...

Translation: Dutch (automatically detected) » English

Few investors are currently keeping the question "what's the next big thing." Witness list the biggest risers in the AEX-index and - yawn - new bull market in China.

I try not to ask also actively respond, but sometimes I happened to come right shares that qualify for a title, such as Nexbis.


Nexbis (formerly Entertainment Media & Telecoms) is operator of the self-developed security technology 'Nexcode', with a printed square blocks.

This allows mobile phones for example a picture from a database then that information can be obtained. There are billions of possible variations of the blocks.

Better than RFID
This is very suitable for identification purposes. The company has patent applications in 140 countries run on this technology, most of which have been approved. In general, keep it safe as best in the world, which it is even beyond the common RFID could pursue.

The company is listed on the Australian Stock Exchange, but is based in Malaysia and there is an MSC-status, so that five years is exempt from taxation.
Nexbis focuses on contracts with governments and last year closed a major deal with the Malaysian government.

During five years the company will all work permits to foreign workers with a code that the information can be quickly scanned and checked. Currently, the company gets paid per code printing, making the income variable.

Fraud
In addition, the company recently signed a contract with China Gas Tank Project, an initiative of the Chinese government which buyers of a gas meter be obliged to let it provide a Nexcode meters in order to combat fraud.

The contract agreed to convert its minimum (rising from 30 to 45 million U.S. dollars per year). Should more be transformed over the company now receives just one course fee. Through these contracts, the company with its technology and more contracts are expected to follow.

Nexbis one years has been so long a letter of intent from the Vietnamese government to license all of the codes provided. Analysts estimate that approximately between 60 and 80 million Australian dollar will be earned by the contracts, which many expected the deal in Malaysia.

Debt
The figures for the period June 2008 to June 2009, the turnover of this contribution had fallen to three million Australian dollars. There is also uncertainty about the payments by the Chinese government. That would still be coming.

Both reasons are put forward for the extremely low valuation of Nexbis of three times the net profit for the past year (two times the expected earnings in the current year). Interesting detail is that the company based on the unspoken consultancy income is already profitable. Moreover, it is virtually debt free.



Given the large fluctuations in the profits and the price it is dangerous to make predictions, but if the agreements are complied with existing customers share my opinion, certainly deserves a "normal" appreciation of at least ten times the current earnings (a rate of 200 potential % from current levels).

The growth potential is still completely ignored. On this basis, an innovative, relatively recession resistant Nexbis share as long to record on $ 2 (current rate 0.37 Australian dollars). Well, or in other times.

Mark Leenards fund manager and is possessed of the fair. Since March 2006 he manages the Strong Buy Selection Global Equity Fund. He uses a wide range of analysis to look for promising stocks in all global markets. The SBS Global Equity Fund has at time of publication a long position in Nexbis Ltd.. Your comment is welcome.
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Reader Comments

Bill Peat - 12 Oct 09, 23:34

The Australian stock market?
Any ideas how to get the scholarship placed an order?
I'm not taking my alex.
looking value - 12 Oct 09, 21:56

We could not get a list of AEX alternatives, see previous comment column.

Be sure to have worked?
PJGrefhorst - 12 Oct 09, 19:21

Beautiful. Wedje we will explain that companies like BAM, USG and Air France KLM will outperform your stockpick over the next 5 years?
economie_is_niet_saai - 12 Oct 09, 19:02

= to go
economie_is_niet_saai - 12 Oct 09, 19:02

From logistics to school my teacher always hear that RFID is very BIG.
A Dutch company is Smarttrac. (listed on TecDax)

Furthermore, more ICT programs in the industry to correct decision making and consumer behavior record.
Business and Decisions is a beautiful French company with a high potential in this sector.

It seems to me very sensible to engage with the next BIG thing as an investor. I think especially in the 2010 case is to invest in these companies because the large crowd will not much longer to rise.
Editorial IEX.nl - 12 Oct 09, 17:08

The Nex a thing

Mark Le