Onwards and ………………………………, eventually, Upwards!
To say the s.p is disappointing is an understatement and I can completely understand why Fanthom and others have vented their concerns. It is difficult to reconcile the steady and organic improvement of the financial metrics, which would be fine if applied to a traditional business model, against expectations for a cutting-edge technology company – operating in the burgeoning 3D Data capture and manipulation market niche.
If we don’t grow more rapidly we are in danger of being pushed aside for a more aggressive rival. BTW, I don’t want anyone to try and say that we do not have competitors – that is bollocks. Conservative management under these circumstances may be a problem and it is hard for me to accept when we have the capacity to expand really quickly, by leveraging our current position, where and when we are at the forefront of this market. For instance, we can readily accommodate more debt, given our current level is miniscule, to facilitate growth.
IMO, the M.D has a more complex and multi-faceted role to play in this company compared to many other companies. I think management falls down in three key areas: implementing a stronger growth strategy, communications with shareholders and being appropriately focussed on improving our share price (and company value of course).Given these issues I will ask the question: is it time for a management restructuring to bring on board the necessary skillset?
That said, there remains plenty of room for optimism, especially when you take a deeper dive into the last quarterly. The technology developments underway and recently implemented are terrific. The creation of digital twins is gaining customer acceptance, delivering great client benefits and the incorporation of layered data and machine learning is absolutely brilliant. The first version Analytics that identifies changes between point clouds has been released and this is a potential killer utility that clients across a number of sectors will go weak at the knees for when they see the results. Detecting post storm damage is just the tip of the iceberg for our clients.
All up, there is plenty happening on the tech front and I am especially excited at developments around picking up 360 photo datasets, extrapolating from ray casts into the point cloud and finding other 3D points, linking imagery data and applying analytics and machine learning to produce a range of views. This is quite gob smacking and once these tools hit the market there will be a surge in clients wanting or demanding the Pointerra platform asap.Ian also talks about expanding the workforce and he is looking at potential acquisitions as part of that picture. Once again, I want to push the speed barrow – with the work and clients in place I think we should have 50 staff, not 31.Ian is planning on a long stay in the U.S. – I hope he is not waiting for our market cap to expand before arranging talks with instos. Their support is crucial to both expanding and moving the share price.
Finally, where are we at with the HyperOne Project and the Intel patent discussions?
Final, Final Key Point: If we can move quickly enough, IMO, the Pointerra s.p. is poised to rocket ahead on the back of a few announcements that I suspect, based on my reading of recent material, are not far away. Stay the course guys and this will become a boomer.
As ever, DYOR
CheersU
