STTCOMP CXZ FA Long SP 1.8c MC 15 MILLION cash 2.5m Share on issue 850 million ( top 20 hold 56%)
CXZ or CONNEXION TELEMATICS is a saas type business with GM motors being there major client CXZ has had a fantastic year during a very tough period during covid 19 for many businesses, yet it has continued to grow rapidly and is net flow positive cash company.
some of the highlights include.
- Revenue up 131% to 8.2m ( 2019 was 3.56m) - net profit before tax up 340% to 2.05 million ( 2019 was 0.47m) - net profit after tax up 587% to 3.2 million ( 2019 was 0.47m) - net cash flow up 254% to 1.49m ( 2019 was 0.42m)
so as you can see these are some massive numbers and a very big increase for the company over this period the company has reported they have not been effected to badly by covid 19 and see the company continuing its growth into the future.
the company is looking to expand its client reach with more car manufactures coming on board with their saas tech and looking at other industries it can be utilized.
key catalysis for SP growth. - acquiring larger client base to de risk from its major client in GM motors - continued increase in net profit margins - finding a new CEO to run the company ( they currently have a interm ceo. - entering into different industry's using their saas tech
TA report - the company initially spiked very well on the annual figures and the massive % increase in their revenues and profit margins however one of the directors decided to sell some stock ( no reason given) and it has caused the SP to pull back rather hard as one would expect. from 1.8c up to a high of 3.8c and back down to currently 1.8c, i believe the SP has now found a floor at 1.7c and it bounces of it strongly and is excellent support if you look at the charting over the last 3 months.
imo the company just needs to show investors a little bit of confidence moving forward and that includes finding a suitable CEO and renewing its large contract with GM motors and rapidly expanding its tech.
