I agree Jocko.. As investors, we should seek and be invested in stocks that have a more than reasonable chance of achieving a SP catalyst that on the grounds of probability, re-rates the SP.
This stock in my view has a number of likely catalysts.
1. Soon to be announced contracts; locking in long term annuity revenue. Timing weeks/months. 2. PayDay Super reforms; locking in the tripling of revenue. Timing 24 - 36 months. 3. International expansion; greater than the current Hong Kong opportunity. Timing 24 - 36 mths. 4. Become a likely takeover target; annuity style SaaS revenue streams, 85 %+ GP margin attracting a premium priced offer. Timing 3 - 5 yrs.
These type of SaaS businesses generally attract a high takeover premium. SuperChoice and other similar business on the ASX have provided historical potential Mkt Cap guidance.
For example, SOI SP Mkt Cap 1.7B. 0.12. $204M 1.7B. 0.16. $272M 1.7B. 0.20. $340M 1.7B. 0.30. $510M 1.7B. 0.40. $680M 1.7B. 0.50. $850M
I will leave it to your own analysis of how far this business will grow in mkt cap before a takeover bid is made.
Ian
WRK Price at posting:
6.3¢ Sentiment: Hold Disclosure: Held
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)