General Discussion / Social Media, page-4239

Notwithstanding political instability, I also think that the market has changed over the past six months or so. It is now more focused on underlying earnings and durability of those earnings, as opposed to top line revenue growth. Maybe this is why many of the small caps, particularly pre-profitability companies are being hit so bed recently. The constant media commentary about interest rate rises obviously does not help either.

As with many things, the market generally move in circles. Whilst I am disappointed with the fall in the current share price, I genuinely do not think that there have been any adverse changes in Alcidion's fundamentals. Perhaps this is just another phase in its journey.

Please note that this is not a like for like comparison but just an example of how the valuation of a company can move in its journey. Xero's journey from IPO wasn't in a straight upward line. It rocketed from $4 to $40, falling down to $12, before going all the way up above $100. This is obviously a simplistic example as it only focuses on share price and ignores everything else. But my message is that we sometimes need the conviction to hold on through the tough times for the elusive multibaggers.

On company specific matters, I also think that some proportion of the shareholder base starting to lose their patience, possibly due to the following:

• lack of visibility over the extent of underlying organic growth because the numbers are being clouded with acquisitions
• slow pace of enterprise contract wins (a issue that seemingly affects the healthcare sector more than others) due to the requirements for tender, reference sites etc. Thus, giving the impression of disconnect between incremental spend on sales and marketing with revenue/profitability
• no evidence of operating leverage as of yet
• concerns over whether or not a product such as Miya Precision is essential. If so, shouldn't it be able to sell itself without requiring complementary products such as EMR?

Nevertheless, it is still important to note:

• structural transition to digitalisation and AI into healthcare (both at and outside hospital settings) will occur and there is a long runway
• there is a move towards a 'deconstructed model approach' aka best in breed solution. Healthcare providers no longer want to be locked in, demanding flexibility and more competition and innovation in product offering. Alcidion's platform is vendor neutral.
• Optionality for the platform business. Alcidion has briefly discussed but yet to detail plans (to be fair, probably way to early in the absence of broad market acceptance) of how they can monetise use of their platforms by third parties' algos

Just my two cents worth...