XAO 0.54% 7,940.1 all ordinaries

STTCOMP SIS FA LONGRisky one but I'm betting on today was panic,...

  1. 2,007 Posts.
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    STTCOMP SIS FA LONG

    Risky one but I'm betting on today was panic, and a bounce from tomorrow. If not then monday.
    Horrible technicals as with most specs after todays sell off, good fundamental - at least in my books? Looks cheap.
    I'll just link the full summary of notes below, and keep the bullet points here

    Link to note:
    https://www.scribd.com/document/421954331/Sis

    Bullet point reasoning:
    • Under $7M EV trading 2.4x annual revenue, and 1.6x expected annual revenue. With closest peer and business partner trading 12x annual revenue.
    • High margin business averaging 58% profit margins last 5 quarters. Management actively cutting expenses to move towards cashflow positivity.
    • Directors adding $200k in recent placement with significant skin in the game. Now cashed up for expansion.
    • Q3 commencing rollout of $7M UCR contract and $750k Confectionary contract.
    • PAC has had great success with ADN, AGH, CAN, OCC and more recently PMY emerging. Same broker from PAC managing placement on SIS as they did with ADN. Pattos have done well recently on 9SP which was their recent tech play and before that it was NXS and MEM which both did about 3bags from placement price.

    Have few other tips in mind but I'll wait until weekend.
    Cheers guys.
 
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