The Next WRR

Higher cap, but 10x the cash, and is paying a reliable 7% dividend from excess profits.

The same  ultra low risk at current prices, with similar scope for a big move higher in the near term.

Same largish seller capping the price... on WRR it was around 13c, on COO it's around 16c

COO capped at $38 million, with $13.3 million in cash, and zero debt.

Most dividend paying stocks are generally big, lumbering blue chips with limited scope for near term capital growth.... and most of these are only paying a 3 to 5% yield.

With COO you get ONE OF THE HIGHEST DIVIDEND YIELDS ON THE ENTIRE ASX, combined with a possible bagger in capital growth.

Like WRR, COO is operating in the hot technology sector, with a market-dominating  SaaS (software-as-a-service) offering.

This from the quarterly report just released:


That $13.3 million is more interesting than it looks, because the quarterly only shows $11.3 million in cash.

COO kindly noted with cash on hand as at today, in addition to the cash the company held at the cutoff date for the quarterly.

The cutoff date for cash to be included in the quarterly was 31st March... so in the 1 month between 31st March and now, COO has added $2 million to its bank balance.

$2 million in one month... so the next quarterly report should show bigger positive cash flow than the market is currently pricing in.

COO recently appointed a new CEO, David Tonuri.

He is a veritable corporate big wig, and specialises in mergers and acquisitions.

Previous positions include Director of Corporate Banking at NAB, Managing Director of ANZ Capital, associate Director of UBS Capital, Vice President in the Sydney office of Bankers Trust where he was involved in numerous acquisitions, and Investment Executive at Archer Capital.

Most telling was his appointment at Bank of Queensland in 2010... BOQ created a new role just for him, Group Executive of Strategy and Corporate Development.

BOQ even included their aim to "grow our business through complementary acquisitions" in the announcement of Tonuri's employment:


Chart looking healthy, especially after a big volume spike last month, the biggest in the company's history.

OBV shows accumulation, made a new 52 week high on Friday, nice little retrace today provides ideal buying point before the spring back to new highs.