Micro cap shares that can make you a fortune

Meanwhile, what some analysts are saying about M7T.. good time to buy if you agree, despite management's lack of communication to share holders, the fundamentals look good.

" Mach7 Technologies Ltd (ASX: M7T) has a market capitalisation of $54.9 million and develops healthcare imaging software. It also has a small medical 3D printing business.

The company’s software is installed at 529 sites in 11 countries and customer contracts typically last five years with an increasing proportion of revenue paid monthly rather than upfront. It is costly for customers to switch providers and so combined with the transition to monthly invoicing, it is reasonable to view the revenue that Mach7 earns as recurring in nature.

In February, Mach7 announced that it expects to achieve profitability at the earnings before interest, tax, depreciation and amortisation (EBITDA) level in 2017 on the back of surging revenues. Revenue for the first half of 2017 rose 40% to $4.8 million on a pro forma basis. The company’s growth potential is significant as its products address a multi-billion dollar global market.

As predominantly a software company, Mach7 earns very high gross margins – 94% for the first half of 2017. Consequently, most of the revenue growth for the period converted to incremental profits. EBITDA losses fell from $3.3 million in the prior corresponding period to $1.4 million for the first half of 2017.

Clearly, significant revenue growth is required in the second half of 2017 for Mach7 to achieve a breakeven result for the year and so there is a good chance that the company will fall short. Mach7 had $5.8 million in cash at 31 December 2016 so should not need to raise any further equity assuming this goal is met. "

http://www.********.au/2017/03/09/3-speculative-micro-cap-shares-that-could-make-you-a-fortune/