10x ACMR is a fair valuation given their growth so that puts that at $48m. The cash burn will concern people but the growth we are seeing makes me optimistic.
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I'd be very happy with growth 100% YOY, new customers being signed up and implemented and zero customer churn.
This is very encouraging from the report.
[abridged]
- During the period, the deployment of VMob’s technology platform for McDonald’s Japan was completed.
- approximately 20 million Japanese consumers using the McDonald’s app [...] and significant uplifts in sales - 3,200 restaurants.
- executed a further agreement with Mcd Japan to provide data analytics services
- McDonald’s US roll-out commenced in September 2015 and the user base is growing rapidly - 13,500 restaurants - potential for VMob in that market is significant.
- An agreement with McDonald’s Korea was secured in July 2015
- further agreements have been concluded with - and go live 2016:
- McDonald’s Baltics (for Latvia, Estonia and Lithuania),
- McDonald’s UK (as part of a European solution) and
- McDonald’s Singapore.
- contract to deploy technology platform for IKEA in five countries across Europe, Asia and North America. The first project deliverable released in those five markets
- the final phase of the project (location-based marketing and beacons) is scheduled to go live in January 2016.
- potential exists to expand the Company’s footprint with IKEA in additional international markets.
- contract signed with 7-Eleven in Australia now in live pilot mode with a full commercial launch scheduled for 2016.
- Anheuser-Busch deployed a successful pilot IOT platform in a number of its US bars. The scope of the pilot is now being expanded
- could lead to a much wider roll-out over time - supplies more than 250,000 bars across the Americas.
- IOT pilot secured with Mars Drinks - substantial opportunity for the Company
sales pipeline continues to grow.
customer churn remains at zero.
Using Harveys 10x ACMR 'fair valuation' = $48m / 74.445m = $0.65 SP (rounded).
Not impressed, continuous issuing of stock, will soon be as diluted as before.
No new sign ups for ages now. No aussie listing like they said.
Was one of my smallest long term holdings but glad to be out for a small loss on today's small rise.
This is just a personal opinion but I think the more they can prove themselves to be a USA centric company then USA valuations will be applied to the company. I think the NZ market is undervaluing their opportunities. Doesn't really matter though in the long run it all evens out.
What is also interesting is to see if the headcount hiring declines therefore making this a strong cash generator. I don't have the numbers in detail to know how many people are needed per contract.
US centric and US as a market?
I seem to recall a company (funded by Nathan Finance) soaring on the back of its technology and 'product' offering - sp kept going up as it boasted of sales growth.
When it came crashing down, it took many with it - all the naive investors and depositors.
Anyone recall the name of that company?
Started with a V as well.
And folks who sadly sold out at the bottom, to shrewd traders and occasional almost forgotten but not extinct down-rampers, will wonder about the wisdom of their decision to divest in the low $0.3's while in plain view have been the sophisticated investors who have taken substantial holdings.
At $10m(+) ACMR forecast x10HF (Harvey Factor) = $1.34 SP valuation 6-9 months away. Nice.
Very different scenarios here but nothing is guaranteed. Let's just say winning in the US is not easy and it gives the company some marketing clout with their customer base. VMob has to continue driving value to consumers through its app and the deals will follow. If they get this right I think someone will buy them.
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I just saw this on www.scoop.co.nz http://www.scoop.co.nz/stories/BU151...ging-sales.htm . what is interesting is that there is a breakdown of where the revenue is coming from in different regions. someone with a little time might be able to work out some future income streams based on when markets went live and the period the that Vmob was live in particular markets
1.European sales climbed to $377,00 from $104,000, while Australasian sales fell to $245,000 from $298,000
2. Asia overtook Australasia as its biggest market in the first half, with operating revenue rising to $1.29 million, from $100,000 a year earlier.
3. The US, VMob's newest market, jumped to second place with $622,000
however the big news is the well discussed point that VMob is forecasting ACMR will exceed $10 million in the next six months.