JCS jcurve solutions ltd

JCS is best value play around - why - Spectrum proves it In a...

  1. 1,912 Posts.
    lightbulb Created with Sketch. 214
    JCS is best value play around - why - Spectrum proves it

    In a previous post I gave my valuation of JCS at 5 cents.

    Cash: Sitting on around $3.3 million as at 31/12/2018 (based on conservative current run rate of cash accumulation over the previous 12 months to 31/12/2018). Accounting for previous 3-4 months =
    $3.5 million
    Revenue: $10.4 million fy (5.2 mill hy) with an inferred multiple of 1.25 times (industry average is typically over 1.5 times) =
    $13 million

    Total Valuation = $16.5 .....or around 5.1 cps based 327 million outstanding shares.
    This valuation is very conservative if we look at the Spectrum Acquisition more closely….


    What we know from the Spectrum deal?
    • Initial Revenue is flagged at SD$400,000 for the year ending 31st March 2018….For those who don’t know the exchange rate that is SD$1.05 to AUD$1.00AUD.
    • JCS have paid initial payment SD$300,000.
    • JCS have are forecast to pay another SD$300,000 in a deferral payment.
    • JCS will pay approximately SD $600,000 for SD $400,000 annualized revenue giving Spectrum a purchase price multiple of 1.5 TIMES revenue.
    What else do we know about Spectrum?
    • Spectrum is a NET-SUITE TWO – STAR SOLUTION PROVIDER
    • JCS is a NET-SUITE FIVE -STAR SOLUTION PROVIDER
    • JCS will receive an uplift in on the commissions that Spectrum receives…instead of receiving a 2 Star provider commission rate JCS will receive 5 Stars commission rates.
    Conclusion
    • In my valuation I applied a 1.25 times multiple to recurring revenue.
    • JCS paid 1.5 times for 1.5 times for a TWO-STAR provider that receives lower commission rates.
    • If JCS pays 1.5 times for a two star provider JCS must be north of 1.5 and probably closer to 1.75 – 2 times
    REVISED VALUATION
    Based on 1.75 times recurring revenue = $06.6cps

    Cash: Sitting on around $3.3 million as at 31/12/2018 (based on conservative current run rate of cash accumulation over the previous 12 months to 31/12/2018). Accounting for previous 3-4 months =
    $3.5 million
    Revenue: $10.4 million fy (5.2 mill hy) with an inferred multiple of 1.75 times = $18.2 million


    Total Valuation = $21,700,000 .....or around 6.6 cps based 327 million outstanding shares.
    Based on 2 times recurring revenue = $0.074cps
    Cash: Sitting on around $3.3 million as at 31/12/2018 (based on conservative current run rate of cash accumulation over the previous 12 months to 31/12/2018). Accounting for previous 3-4 months =
    $3.5 million
    Revenue: $10.4 million fy (5.2 mill hy) with an inferred multiple of 2 times = $20.8 million


    Total Valuation = $24,300,000 .....or around 7.4 cps based 327 million outstanding shares.

    spectrum 1.jpg




    and now connect with


    spectrum 2.jpg
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
3.5¢
Change
0.000(0.00%)
Mkt cap ! $11.56M
Open High Low Value Volume
0.0¢ 0.0¢ 0.0¢ $0 0

Buyers (Bids)

No. Vol. Price($)
2 80000 3.0¢
 

Sellers (Offers)

Price($) Vol. No.
3.6¢ 1105808 1
View Market Depth
Last trade - 16.21pm 10/07/2025 (20 minute delay) ?
JCS (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.