The remaining 6 Companies’ writeup is below! The TechKnow show definitely brought to us more ideas to look at and we hope we can keep attending these events.
14. Wangle Technologies (WGL)
Two products: 1st is the VPN and 2nd is the Family Insites.
Family insites is a similar concept to FZO in the sense that they are trying to solve the same problem. Fundamental difference is that Wangle’s approach is not the “put up walls” unlike FZO, but they use metadata to detect trends in order to detect, then alert the families so that they can talk about it. Upon talking to the CEO, he was saying it’s really impossible to avoid harmful content ie. friends can show the child, people can go off wi-fi (FZO) and use Telstra’s data for example, to look up stuff. By alerting the parents, you take a realer approach to these things and helps the child develop properly (educational programs included with Wangle’s product).
During FY17 they signed with Student Edge (access to potentially 900K users, that would be paying ~$2/mth or below for the app) vs regular price is $4.99/mth (family product is $9.99/mth)
Foundations laid down, R&D will be constant, Growth phase begins (ie. marketing post-launch of wangle family insites). Best to see how their sales pan out over the next 2 quarters to March at least to gage demand for this product.
Revenue $840K ($740k from R&D rebate, $60k from interest)
Cash $923K + $1.2M from tax rebate (18th October 2017)
Net Assets $3M
MCAP @ $0.019 ~$15M
15. Brainchip (BRN)
Machine learning. Developer of software and hardware to create AI. They sell “Brainchip” products which are little chips that can simulate neuron functions.
Complex industry to understand and hard to gage whether they are doing well. Perhaps a few more quarters to see how they go in terms of sales and if solid, consider investing. Chart indicates a lot of bullish sentiment, so potentially something to keep a close eye on
Revenue $369K ($11.6K from interest, $224K from random areas due to RTO pre-owned assets)
Net Assets $6.8M
Shares 849M + ridiculous amount of options and performance rights
MCAP @ $0.245 ~$221M
16. LiveHire (LVH)
They make money by getting companies to create talent communities. Users join the talent communities if they are interested in working for that company, and users can join more than 1 talent community to stay alerted on any job openings.
Business model makes money off the size of the talent communities so as long as they keep adding talents, which they are, they will generate a nice recurring revenue. Very solid business model considering the exponential effect and users being able to join more than 1 talent community.
Record cash receipts up 35% QoQ to $444K
senior appointments made to boost sales
no outlook but at their presentation they talked about simply adding more talent communities to leverage growth. Also talked about entry into U.S. market (no competition there at present)
Expensive at current price, but the trend is your friend. Potential trade but can have a huge drop at any point in time
Cash $16.2M (3Q)
Debt free (3Q)
Net Assets $20M
Shares 260M fully diluted
MCAP @ $1.00 ~$260M
17. Change Financial (CCA)
Wholly owned subsidiary called ChimpChange is an all-online banking service for millennials that have been seeing huge new-client figures since launch. Adoption rate is huge but we question whether they can manage their cashflows (FY17 saw 8M spending in just operations, mainly due to a larger headcount as they have been growing).
At such extreme levels of growth, it’s market cap is somewhat justified. However the risks are huge. If they start slowing down drastically, you could see a shock in price. Obviously very speculative at this stage with huge losses, but a lot of postiive sentiment behind it that makes it a potentially fun trading stock.
They are also entering crypto space (announcement) so that’s interesting.
18. Volpara Health Technologies (VHT)
Digital health SaaS whereby they detect early signs of breast cancer by improving the screening process. Not the type of business we have a lot of insight into, but we can definitely say we like that they’ve transitioned from a contractual style business to providing SaaS and enjoying more recurring revenues that in FY16. Top line growth has been great so not a bad punt and seeing how their operations only burn through NZ$1.8M per quarter, they are cashed up for FY18.
This needs to be on the watchlist.
Revenue NZ$1.8M (2Q18 says Annual recurring revenue of NZ$2.14M, 71% of revenue; )
Cash NZ$9.3M (2Q18)
Net Assets NZ$14.2M
MCAP @ $0.66 ~$94M
19. Updater (UPD)
Moving service whereby when you move house, Updater helps you update your addresses, utilities, accounts, mail etc. they have announced two new verticals, insurance and full service moving, and have raised A$55M recently to implement it.
Also acquired 2 companies: IGC Software and Asset Controls Inc (together, MoveHQ) expected to be integrated with the core business by end of 1Q2018 (March)
Pumping money into growth and market seems to like the story a lot. Pulling back to support but this could be a seriously good trade if one sets up via bounce near $1.00 levels.
Gross Margin $477K
Cash US$69.3M vs 3Q17 op.cf of -$3.1M
Net Assets $29.6M
Shares 649.9M CDIs
MCAP @ $1.165 ~$757M