CV1 - CV Check Ltd

[kyanar]

So, IPO last Tuesday at $0.20, already sitting around the $0.30 marker less than a week later, and the company is touting having beat prospectus forecasts in their first post-listing earnings report.

Kind of a boring industry (police checks) but some interesting application of technology to turn an archaic process into something a lot more streamlined, and potential to really shake up some things.

Bought in with minimum holding due to some trepidation (other forums raising red flags based on sheer number of performance options issued, and super optimistic revenue targets), currently wishing I bought in more.

[kyanar]

Close yesterday (10 days after listing) up $0.16 (with depth showing a buyer at $0.37 when market opens if they don't pull their bid).

Anyone else have input on this one, or holding?

[Wolf]

Nice, you'll be pretty happy with the current price.

Personally not my kind of investment.

I tend to avoid recently listed companies, particularly tech.

High growth/high cash burn company.

@40c thats a fully diluted market cap of $87m.
Pretty expensive considering 2.6m rev for 2015 and forecast 6.3m rev for 2016. With a 2.5m loss in 2015 and 6.5m loss in 2016.
I do think their revenue targets are pretty bullish, i think I saw some crazy figures in a broker report. However they are spending $5.5m on "marketing" in 2016 so you'd be expect some significant growth....
They will likely need another capital raising in 2016 and break even looks awhile away. Don't think their spending on marketing relative to their revenues is sustainable either.

Could go either way.

Just my thoughts from a cursory glance.

Not advice.

[kyanar]

Some good input. I'm a little confused by the current price direction - as of right now last trade at $0.495 or nearly 150% gain from the Tuesday before last. And some seriously optimistic sellers (up to 200% growth on the sell side).

I recall reading the rather insane growth targets you mention in the Triple C report (being lead managers though, and an associated entity, you would expect them to be overly optimistic) - they were based on achieving rates along the lines of realestate.com.au and other major success stories.

Im tempted to shave a portion off my holding to reset cost base and leave the rest of the holding to do as it will.