Short Term Trading Weekend Lounge :8 -10th Sept

Originally posted by onaroll1 ↑

Fluro2au,

Artificial Intelligence (AI) is a great topic. I would appreciate it if any posters could nominate any AI companies on the ASX in their infancy with merit.

AI has been hot on the ASX for some time. There are some hidden gems.

Take for example Appen Limited (ASX:APX) that I have been holding for a while.

APX is a global player in the development of high quality human annotated datasets for machine learning (think of internet of things, IOT) and artificial intelligence. APX customers include the world's leading technology companies, automakers and governments.

Fantastic management that have never missed a beat since I have been following them.

They have gone from a small cottage company to one that will be included in the ASX 300 Index on the 18th September 2017 with a current MC of $463 million (Commsec Trading Platform) servicing 130+ countries presently.

APX Is already earning vault loads of profit.

A fantastic bevy of figures and any farmer would love to have this cash cow quietly stashed in their back paddock.

For such a quality company with such a proven growth profile there is always a premium added to the share price. APX has a current P/E of 33.3 (Commsec Trading Platform). It should be noted however that with proven ASX tech growth stocks adding 40 -50% EBITA per annum their P/E is usually significantly higher.

The catalyst for a short term trade is the possible re-rate when it is added to the ASX 300 Index on the 18th September 2017 although some index fund managers may have already made a pre-emptive strike. Maybe more of a longer term hold as is my strategy.

This post's intention is to be informative and objective. In no way is it intended to be investment advice. Never take any post on social or trading media sites at face value. Always do your own research and it is important to remember that capital preservation and accumulation is paramount in every trading decision.

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The profit figures for APX were lost when I posted the above message. They are as follows:

APX posted an impressive annual EBITA of $12.8 million to the end of June 2017 up 44% from the financial year ending June 2016. The Company have given guidance for the full year EBITA for the year ending December 2017 is trending at the upper end of 40% to 50% above the prior years result ending December 2016.

The company has a strong balance sheet with approx $20 million in cash at the end of June 2017 (up from $16.5 million at the end of December 2016) and net equity of $39.1 million at the end of June 2017 (up from $35.4 million at the end of December 2016).

Apologies for the disjointed posts but the figures are impressive for an ASX IA company that will be added into the ASX 300 Index on the 18.09.2017.