The obvious answer is that this time, is different. At least I’m hoping it is.
Tesserent appears to have settled on the acquisition growth strategy, with reasonable organic growth also. The acquisitions will be the major driver of earnings growth. Before this Tesserent had not settled on a growth strategy.
Cash positive is in sight. Low debt. Cash in bank. Shareholder communication better since Geoff Lord came on board.
Tesserent was always a good business with heaps of potential. Just needed good management, good promotion and some luck.
Keith worked hard, was technically brilliant but was out of his depth running a public company. The reason I dislike him so much is not anything to do with his management of Tesserent. His decision to dump a huge amount of shares on market, was a low act. He could have sold off market or waited or sold in smaller parcels. It sent a bad message to the market at a time when Tesserent was struggling.
Rob Langford performed very well and set the business up for cash positive and earnings growth with some good acquisitions. He also had shareholders interests at heart - the decision to stop the Asta acquisition for example. Took some guts. He also engaged with shareholders unlike Keith.
Geoff Lord is on another level. Significant business experience. Worth a fortune and does not need Tesserent in any way. Made serious money before with an IT business (UXC). He has Tesserent stock at 5c and can’t see him selling out for less than 25c a share. He has to be in the stock to make good money and a significant return given he’s already worth over 100 million.
You can tell Geoff Lord has experience with public companies. The article in the AFR which got TNT a speeding ticket - but sent share price up 40%. Smart move. The letter to shareholders including psc to try and support the share price - which it did. Smart move. Just little things that make me think he’s a pro who knows what he is doing.
Nothings a certainty. But I’m backing Geoff Lord to take Tesserent to the next level. He’s done it before. A cyber security business turning over 50 million, profitable and with with no debt could go anywhere in terms of share price. It would also be an attractive acquisition target - which I think is what Geoff Lord has in mind.
My prediction is that within 2 years Tesserent will be acquired for more than 30c per share. Geoff Lord wins and so do we.
TNT Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
