Thanks for the kind words. I took me a few weeks to get all of my thoughts together but found it a very useful exercise to clear my head of all the noise, update my research and assess my level of confidence. I’m also glad it’s been generally well received by the forum.
I also looked back at some of your posts and found them very balanced. So in the order ofyour questions…….
- High 0.04’s. Since the renaming, and commsec reset, I don’t have it exactly. A fair value? I’m not an analyst so I only know what I’d like it to be.
- Fantastic. What an opportunity. But getting the foundations, piloting and refining the procedures and not rushing is very important.
- I didn’t.I extrapolated from the last few quarters total revenue. The company is developing a consistent track record of quarter on quarter increase in earnings and I was a little too high but wasn’t disappointed.
- Declining? I think it’s stable. Or if you mean Section 4 of the Consolidated Notes, where the SaaS revenue has dropped, note the implementation revenue has doubled. That maybe means one of two things - new customers or customers upgrading to the new release. Or both.
Six months ago Adrian stated that lending was the focus of the company and clearly it is. And it seems that’s where the demand is.
5. Poor uptake is an assumption. Without knowledge of customer contracts, pricing, upgrades, success clauses, payment schedules, it’s just guessing. Note that the loan interest revenue is around $360K but the total lending over $600k. So has some SaaS revenue been reclassified? This is where my accounting skills are lacking. But we will certainly see. Meanwhile the loan book is building nicely and in its very early days.
I don’t know how many times Adrian has said in presentations and webcasts that 2021 was a year of transformation, consolidation and commercialising (I smiled at weaponising) the software. To me that all means ‘heads down-bums’ up design and development. Upgrading the old Appstablishment Capricorn systems and merging the Invigo software into a Commercial Software package Solution. That’s a bucket load of hard work. Oh and while they’re at it let’s make it work in India and Asia and build the invoice by link function, support the existing customers, get some nectarines and plums to China making sure everyone gets paid,and get eBev up and running. And then while you’re doing that let’s gear up for Chinese New Year. That’s a lot of very good work.
A lot of this is in the last 4C Highlights.
I know I’ve gone on a bit from your questions but maybe it helps to explain my strategy and what I look for in a technology investment. That’s me - an investor not a trader.
I also read a lot and use YouTube. I love the Warren Buffet and Charlie Munger videos. My favourite relevant Warren Buffet quotes……
Never invest in a business you don’t understand.
The stock market is a device for transferring money from the impatient to the patient.
If you don’t want to hold a stock for 10 years don’t even think about holding it for 10 minutes.
Well it’s almost time for an ice cold beer. It’s 38 and sunny in FNQ. Hope you enjoy yours Chosen. This has been useful for me as it forced me to dig hard for some information which I found pleasantly surprising.But I think now it’s almost time to give HC a break for a while. Best of luck.
And my thoughts are very much with the people in the flood zones.
(20min delay)