what is nuix PE, page-2

For anybody hovering their finger over their mouse with a buy order pending , consider the following:

1. The green shoots of a turn around are well and truly established.
2. Maquarie have not flinched throughout the market malaise over the past 12 months and have remained a stoic holder.
3. The buy side is still 3 to 4 times the sell side.
4. NUIX's reputation is being restored and customers will return/utilize their services.
5. NXL will rise rapidly up the ASX indice's which will give institutional shareholder a mandate to buy.
6. And , finally, news articles like todays Ticky Fullerton's piece in THE AUSTRALIAN will become the new reporting dynamic for NXL......i.e. very positive euphoria!!!




Why Nuix is destined to regain its ‘market darling’ crown
TICKY FULLERTON
8:14PM FEBRUARY 7, 2023 ASX-listed Nuix is on the path back to stock market darling status. Shares in the analytics and intelligence software business roared up almost 40 per cent on Tuesday to $1.26.First came the trading update on January 19 which surprised on the upside, lifting Nuix shares 18 per cent.And then on Tuesday – in news that should decide the fate of the business – a massive victory in the Federal Court over former chief executive Eddie Sheehy who was claiming $183m over stock options in the business.In an exclusive statement to The Australian, chief executive Jonathan Rubinsztein said: “We have had conviction about our position since the start of the case. “However, our focus has been and continues to be on the transformation of this great global tech business. We are excited about the green shoots that are emerging.”That conviction was clear back in November at the Nuix AGM, when despite noise around class actions and other litigation, Rubinsztein chose to hone his message to shareholders on the progress in the core business that he was turning around. This was the first mention of green shoots after he had reset strategy for the business mid-year. He branded Nuix as a global force for good. Shares jumped over 20 per cent on that day.But Tuesday’s court decision is huge both in terms of the bottom line and staff morale. To put Sheehy’s $183m claim into context, at the August annual results Nuix declared pre-tax earnings of $12.1m and a cash balance of $46.8m.The potential liability created by Sheehy’s action was still very much on the radar at the company’s January trading update.New & improved business newsletter. Get the edge with AM and PM briefings, plus breaking news alerts in your inbox.Sign upNuix advised that the all-important annualised contract values, for the December half, could be between $168m and $171m – a 5.6 per cent rise at the top of the band on last year. But it also warned that the Sheehy decision could well affect its upcoming results on February 20.Sheehy will be given time to lodge an appeal over the Federal Court decision but the judgment is strongly worded. And there is no doubt that customers and potential customers who might have been concerned about a major future liability risk will be looking at Nuix in a new light.You can bet Rubinsztein and the team will be working to capitalise on this. Many of these customers are banks, regulators and intelligence services operating around the world. The famous Nuix Engine has the ability to makes sense of reams of unsorted data to help with cyber threats, risk and compliance or fraud investigations. The company helped unpack the Grenfell fire in London, the Volkswagen diesel investigation and, in Australia, the financial services inquiry. It has been one helluva ride for those Nuix shareholders who bought into the Macquarie-listed float in December 2020 – the biggest float of the year. The stock leapt over 50 per cent on the first day of trade and was hyped to a high in mid January, only to tank by 95 per cent ahead of last November’s AGM after prospectus forecasts were missed. An ASIC case against the company rumbles on but three class actions were last year combined into one. The market’s biggest concern has been with Sheehy.Over many months of litigation angst Rubinsztein believes people lost sight of what the business is all about. “There was a reason why the market got so excited about us, maybe overexcited,” he told The Australian last year.Rubinsztein is just over a year into the job. The Nuix listing in 2020 valued the business at $1.8bn. Today, even with the share price jump, it is valued at about $400m. It will take longer to get back that it did to fall, but the next year promises to be important for Nuix and its CEO.Rubinsztein has a track record of building global tech companies – first as chief executive and founder of UXC Red Rock Consulting which he built from a start-up, and then as CEO of Saas business Infomedia.The quality of the Nuix customer, and the rising annual transaction values both point to the belief that its technology and know-how is the real deal. If only Macquarie were not sitting there at 30 per cent, Tuesday’s court news could have been enough to flush out a takeover.