I think it's a bit different, comparing apples to oranges....

I think it's a bit different, comparing apples to oranges. Livetiles growing their ARR while burning cash require massive capital raises. They are doing their best to control the cash burn but they have to reinvest in order to grow. In order for them to succeed they have to rely on "network effects" to reduce sales & marketing expense. They still have to reinvest in product development otherwise a competitor comes in steal clients away. Hence, why they are forced to grow during this period. Eventually, they have to settle down and start making profits. Thus, the market does not know how to value a company like that during the short term and the market cap should not matter. The only thing that those investors should really question is whether they can grow their ARR while reducing cash burn. You need multiple half years to see it.

Painchek is still in R&D with 3 business yet to get commercialised (Enterprise Hospital (Phillips, kids trial in Melbourne)), Consumer Dementia (Shared care & Home care), Consumer Children (kids trial in Melbourne)). The aged care business is the only one in commercialisation and when you do rough maths assuming they eventually penetrate in USA. You get around $200M valuation after projecting 5 years of cashflow. That's about $0.22 a share. Hence, just looking at the aged care business long-term makes it an attractive business to hold at these prices. If the other 3 business gets to commercialisation then you have to re-rate the forecast. Thus, to get an attractive return, buying the company now with $100M market is quite attractive for a 50% return. However, most here are buying for the successful implementation of the other 3 businesses as management gave large market sizes. I am buying for all 4 businesses. Hence, the price now looks very attractive, to increase my margin of safety I am looking at 9-9.5 cents to average down.

Painchek is not like Livetiles. Livetiles are growing very quickly with high ARR, Painchek is still doing trials and signing up beds to prove they can execute. It's like the hare and tortoise the biggest return is when the tortoise gets faster legs and start catching up to hare. How I see both companies pan out. The hare (Livetiles) will grow really quickly during the pandemic and then have to figure out how they generate profits (so slowing down) and the tortoise (Painchek) will hopefully cleared the trials and start getting beds quickly through channel partners.

Medtech have hurdles to grow through but if successful can really eat up market share and be really difficult for competitors to get in. With pure tech companies like Livetiles, they have to run faster and faster to get some sort of a lead as it is very competitive. When a competitor comes out, they have to kill it to protect their advantage or build a product offering that prevent customers from switching. Both are hard to do, I am with Painchek as their competitive advantage is much longer. However, I do see the value in Livetiles, if they can keep the competitors away I would not be surprised for the market to give a high multiple. In saying that both are risky. Painchek with clinical trial execution and Livetiles with tech competitors. Hence, apples to oranges