Irony in market pricing UNL vs NOR

The stock market is an ironic beast - a classic example would be to compare UNL to NOR whom are in the same space & indeed competitors.

UNL is newly listed & I had a great chat with their management yesterday to further understand their business model, aspirations & growth strategies.

UNL is currently suffering from a lack of marketing & investor awareness given it's newly listed and unless you were alerted to the listing via APP securities, you wouldn't know anything about the stock.

NOR on the other hand has been in the hands of day traders & alike for over a year now and at one point had a market cap of 150m as the market got extremely excited about the disruptive capabilities of their products.

A picture tells a thousand words, so let me indulge in the below table of comparisons

	Column 1	Column 2	Column 3
0	Stock	UNL	NOR
1	Shares on Issue	125m	980m
2	Top 20	84%	38%
3	FY16 Revenue	7.6m	<500k
4	FY16 EBITDA	1.06m	-16.6m
5	Cash on hand	7m	2.5m
6	Qtr Cash Burn	Negligable	LQ 1.3m
7	Major T1 Customers	Yes	No
8	Voice Solutions	Yes	Yes
9	Data Solutions	Yes	Yes

Now for the ironic part - UNL is currently in the position that NOR wanted to be in about 12 months ago when the market valued the business at c. 150m (Extremely large revenue growth, profitable, penetrating a large addressable market).

However given no one has even heard of UNL (apart from the people within the IPO - being Alan Moss & a couple of Funds), it is trading at a mkt cap of 25m of which they have 7m cash so EV of 18m.

UNL currently has Malaysian Airlines, Flight Centre, Covermore, Coles Mobile & other high profile clients on their books. These clients effectively sell the UNL solution for our company and the primary sales method is via a post sale EDM (email direct marketing).

For example, if you buy a covermore insurance product from flight centre, you'll get an email offering you a free UNL sim to use overseas for voice / data.

The addressable market is also large as there are 8m aussies travelling each year & they say that 30% of those will seek a sim/wifi solution overseas (the other 70% will use global roaming on their existing plans)

LFY UNL had approximately 2m individual customers (via their B2B model) and 1.2m of these were domestic while the other 800k were overseas (generated via the Malaysian Airlines & Flight Centre Canada customers).

Both UNL & NOR are actively engaged & seeking airline customers as they will provide significant scale to their businesses. NOR's TH is probably to announce one of these airlines as a contract win.

Again, UNL already has a large international airline on the books, with an already profitable business trading at almost half the mkt cap (EV to be more specific) than NOR is at the moment... primarily due to the fact no one knows about it!

UNL is where NOR wanted to be when NOR's mkt cap was 150m & then they didn't deliver what they were promising.