Good time to look at MSL, page-6

I'm a new MSL holder as of the last 2 trading days.

This company is one of the most undervalued SaaS companies on the ASX, trading at a mere 1x ARR and with a range of upcoming catalysts. I like that there is a new, invigorated and talented management team in place and that operating cashflow breakeven has now been hit.

Overview:

• 1) well-established business with world class analytics, membership and Point of Sale (POS) software products
• 2) high profile global clients across hospitality venues, golf clubs and sports brands, such as the MCG, Wembley and Liverpool FC;
• 3) high level of sticky recurring revenue (>65%) derived from subscription/service fees;
• 4) the golf business is supported by the endorsement of key governing bodies such as R&A and Golf Australia;
• 5) the modular product style lends itself to an open architecture IT environment at client level, which reduces the risk of the purchasing decision;
• 6) global reach of the group has been materially expanded following historical major European based acquisitions;
• 7) significant growth potential in FY21 from both acquired and organic sources – a number of key contract wins are likely to be announced as sports venues look for COVID-appropriate options in the coming months; and
• 8) strong balance sheet with greater than >$4m cash in hand, currently operating cashflow positive and public confirmation of "no requirement to raise capital"

MSL is flying under the radar massively as evidenced by the extremely minimal number of views per thread here on HotCopper. That will change over the upcoming weeks as the tide starts to turn...

I will share detailed analysis, my investment thesis and a target price later this week.

** Near-term 3 bagger potential **

[Worth a look: @Salubrious, @Keyhole]

T.E.P.