REFFIND Limited (RFN.ASX) – Share price decline overdone,...

REFFIND Limited (RFN.ASX) – Share price decline overdone, especially as business fundamentals are improving.

**DESK COMMENTARY**


Investment Thesis:

• RFN CEO Jamie Pride recently provided a recorded investor update. We believe the main points of this update re-emphasize RFN is well positioned in its respective markets.
• RFN currently have 81 active deals in the sales pipeline. In addition, the company is looking to close 25 deals in the next four weeks. We expect announcements on these new customers over the following weeks.
• The company will be expanding further in the US, both through channel partners and RFN’s own sales person in Chicago, who is expected to start early in Q1.
• Driven by customer demand, RFN will bring its Asian expansion forward as well. The company will be mostly focusing on Singapore and Hong Kong, both through channel partners (e.g. Randstad) and its own sales resource, who will start in March.
• Regarding downloads of the RFN app, Mr. Pride specifically mentioned that Enterprise customers’ distribute the app to employee handsets directly and therefore these downloads don’t show up in Google’s Play Store or Apple’s App Store, putting to rest any concerns regarding download numbers in recent weeks. So far 90% of downloads have been on iOS.
• In addition to a few product updates RFN will be releasing Educate in the first quarter of 2016, adding a fourth revenue pillar.
• In light of the recent selling pressure, we believe current share price levels have become very attractive given that the basic business proposition hasn’t changed. In fact we believe RFN has reinforced its position through the Wooboard acquisition (relabeled Embrace) and additional channel partner agreements.
• We believe the shares are oversold at the current level and continue to regard RFN favourably.