3DP 6.67% 3.2¢ pointerra limited

We are Now on US Investor Radar

  1. 1,694 Posts.
    lightbulb Created with Sketch. 49
    Nice to see the below article identifying why we pass the "Proof Of The Pudding" test ;

    https://www.livewiremarkets.com/wires/proof-of-the-pudding-syndrome-creates-opportunities-in-tech-sector

    Smaller ASX-listed tech stocks suffer from “proof-of-the-pudding” syndrome

    Smaller ASX-listed Tech companies, on the other hand, typically have an investor base that is more than 75% Australian. And given that Australian investors’ backgrounds in technology is generally less developed compared to Tech investors in the US, Europe and Asia, we find that local investors oftentimes struggle to see the long-term potential of certain emerging Tech companies.
    In other words, local investors actually need to see the development milestones being hit to verify that the company is on track to achieve that long-term potential. These milestones may be non-events for more experienced Tech investors overseas who are familiar with that specific technology and/or development process.
    And given the extreme focus of Australian investors on near term revenues, ASX-listed Tech companies that indeed hit their development milestones, which would confirm that they are on the right track to achieve their long-term potential, may still not rerate towards valuation levels seen in more Tech-savvy markets.
    Put differently, whereas overseas’ Tech investors invest in the potential of a technology, we believe Australian investors tend to invest in the actual monetization of a technology, i.e. in a “proof of the pudding is in the eating”-type approach.
    In our view, this “proof of the pudding” syndrome is particularly prevalent among smaller ASX-listed Tech stocks in the semiconductors, data analytics/processing, artificial intelligence and microsystems subsectors. Therefore, valuations of many high potential Tech stocks listed on the ASX are substantially lower than what they would likely be, had these stocks been listed in Tech-savvy stock markets overseas.
    You can’t keep a good stock down

    But given the high potential of their respective technologies, we believe many of these Tech companies will eventually be able to successfully license and/or sell their technology, if they haven’t started to already. And we believe there is a good chance some of these companies will be acquired by larger industry peers at some point, most likely by overseas’ Tech companies.
    In other words, we believe great investment opportunities exist among smaller ASX-listed Tech companies, whose valuations are very modest in an international context, but whose value we expect will be unlocked at some stage.
    Examples include BrainChip (ASX:BRN), 4DS Memory (ASX:4DS), Weebit Nano (ASX:WBT), BluGlass (ASX:BLG), OpenDNA (ASX:OPN), Pointerra (ASX:3DP), Linius (ASX:LNU), Sensera (ASX:SE1), Elsight (ASX:ELS), CCP Technologies (ASX:CT1) and UltraCharge (ASX:UTR).
    Given the Proof-of-the-pudding syndrome though, capturing their upside potential will likely require some patience on the part of investors.

    Please DYOR and just imagine what will happen when we nail our 1st US based contract.........tick tock!!
 
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