M7t

I'm filling my boots with these at the moment. Small cap. They reach break even this year, Feb. I imagine a small profit to go with that, and hoping for some nice new sales figures to be recorded as a greater profit the following year. Subscription based kinda deal with growing ARR. SP might go lower, but im happy to pay the current rate. Scope to be a multi bagger.

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Originally Posted by Lewylewylewy

I'm filling my boots with these at the moment. Small cap. They reach break even this year, Feb. I imagine a small profit to go with that, and hoping for some nice new sales figures to be recorded as a greater profit the following year. Subscription based kinda deal with growing ARR. SP might go lower, but im happy to pay the current rate. Scope to be a multi bagger.

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I have a small holding of these but I paid too much for them...0.79...so I am well in the red atm ... not sure whether to top up...feel they could go down further...so waiting and watching....hmmmm

Haha ditto! Im ok with the price i paid though. I think it was worth it.

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Originally Posted by Lewylewylewy

Haha ditto! Im ok with the price i paid though. I think it was worth it.

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Helpful to hear that thank you :)

I bought in early last year. Have been topping up since so average price paid is now A$0.31

Very happy to hold and will top up further if the SP goes sub 60, which is unlikely to happen if/when they announce another medium to large contract.

Plenty of headroom here, but they still are yet to deliver on their profit and cash-flow forecasts (which I am in no doubt they will) before the market recognition really kicks in. Until then, this remains a speculative stock.

Once profitable, they may get revalued using a different valuation method.

One thing i always find interesting is that the market seems to be based on future value, but companies with contracted ARR kind of report their profits lower than the value of the contracts, which makes them more valuable than a retail shop reporting the same annual revenues, for example.

For example, they might get a $10m contract half way through the year, then report revenue of $5m, which could be deceptive.

I really like the subscription model. It has a lot of benefits other than securing growth, such as business and financial planning, which increases efficiency.

Regarding the price of these, yes they're overpriced, but I paid the price i had to pay to get in, and it won't take long to get back to the entry price with current growth rate and the ARR model.

Actually, I rescind that comment about being over priced. I think it's probably about right now, between 80-125 mc for these. It's a shame there isn't just one more year of good growth on the recent history to get a better idea of what the future will look like.

Topped up today @ 0.635 ;)

Down 13% to 0.54 :( OUCH!

Yeah, poor bear.

Ideally another year of good growth like this last one and it'll rocket because that'll be the start of millions of positive npat. I guess it's going down because of worries of last year not being repeatable? If they end up sitting on a couple of million npat and not progressing from there a PE of 25 would put the share price at half of what it is now.

However, I'm buying more. If they don't do well next year, there's always the year after that. Once they get another good year of sales, I expect to double my cash. Hence im nothing more than disappointed that i didn't pick the bottom. My first purchases where FOMO, so I'm down too. However, i didn't go all in because i expected a drop along the way with all the stuff that's going on globally.

Happy to hear opinions to the contrary, or different ideas. it's quite quiet here.

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Originally Posted by RupertBear

Down 13% to 0.54 :( OUCH!

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The drop is nothing more than market sentiment in action. I am happy to see it drop as it allows me to buy more now at a better price.
It really amazes me sometimes how much the market is impacted by short-term thinking.

In the absence of any more news M7T's price will continue to steadily decline. But by holding off, the risk is that any form of good news (which could be announced at any time) will mean missing the boat.

Any purchase price under $1 for this share today will reap great rewards easily within a few years from now imho.

Yep the Bear is floating in a sea of red at the moment but I am not drowning (yet) as I see lots of future potential here so I will float it out and if it keeps dropping (heaps) I will probably buy a few more :eek2:

I doubt it'll go much (if any) below these lows. $80m for a growth company with an ARR model is cheap imo. Im buying at this price.

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Originally Posted by Lewylewylewy

I doubt it'll go much (if any) below these lows. $80m for a growth company with an ARR model is cheap imo. Im buying at this price.

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The Bear is pleased to have your company :)

It'll be nice to have someone to share tme success with

Hey all. What do you suppose sales growth will look like next year? This is the big question. Will they be subdued at $0.5m, or in the low tens of millions like last year?

I have a concern that the recent sales growth is a one off, due to getting all the clients from their new partner arrangement with Client Outlook.

Just spitballing half-baked ideas here:

I've been re reading the reports and giving this some more thought. I think we over paid.

The reason i say this, is that it'll take another ~$7.5m contract to reach break even (doable), giving an extra ~$3m on the ARR for the year. The following year could be the same. Assuming no additional cost, that's $3m profit before tax. They probably are carrying a tax loss, so let's be generous and say that it's $3m NPAT.

At a PE of 25, that's a MC of $75m. About where the SP is now. If we say that the SP is always forward looking, then today's value should be a MC of $75m.

I use a PE of 25, as a PE of 20 assumes that 100% of NPAT is paid out as dividend, with the share yielding 5% ROI, plus 5 PE because it's a growth share. (Maybe the PE should be higher to consider the following years growth, or lower because the assumption of paying out 100% of NPAT is unreasonable? Perhaps the PE should be between 15-25?).

Linear future growth prediction below:

The following year, they may get $4m NPAT (say ~$6m ARR with no tax losses left), then ~$6m NPAT, then ~$8m the year after.

Unless sales increase, i think it's double your money at today's prices in 3-4 years, not in 1-2 years as I had previously predicted.

So today's price, i think is ok buying at $0.54, but they really need to continue to grow rate of sales in a non linear fashion to make this thing worthwhile. Probably need to do a bit more work on calculating an appropriate future PE to justify that.

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Originally Posted by Lewylewylewy

Just spitballing half-baked ideas here:

I've been re reading the reports and giving this some more thought. I think we over paid.

The reason i say this, is that it'll take another ~$7.5m contract to reach break even (doable), giving an extra ~$3m on the ARR for the year. The following year could be the same. Assuming no additional cost, that's $3m profit before tax. They probably are carrying a tax loss, so let's be generous and say that it's $3m NPAT.

At a PE of 25, that's a MC of $75m. About where the SP is now. If we say that the SP is always forward looking, then today's value should be a MC of $75m.

I use a PE of 25, as a PE of 20 assumes that 100% of NPAT is paid out as dividend, with the share yielding 5% ROI, plus 5 PE because it's a growth share. (Maybe the PE should be higher to consider the following years growth, or lower because the assumption of paying out 100% of NPAT is unreasonable? Perhaps the PE should be between 15-25?).

Linear future growth prediction below:

The following year, they may get $4m NPAT (say ~$6m ARR with no tax losses left), then ~$6m NPAT, then ~$8m the year after.

Unless sales increase, i think it's double your money at today's prices in 3-4 years, not in 1-2 years as I had previously predicted.

So today's price, i think is ok buying at $0.54, but they really need to continue to grow rate of sales in a non linear fashion to make this thing worthwhile. Probably need to do a bit more work on calculating an appropriate future PE to justify that.

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Thanks for posting LewyLewyLewy, probably a bit of a gamble at this point in time I guess ;)

Up 7% today! Boom! :eek2: Probably be down again tomorrow but hey today is a good day so no worries :D

😭😓 i was wanting to buy more. Hopefully down tomorrow

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Originally Posted by Lewylewylewy

 i was wanting to buy more. Hopefully down tomorrow

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That crossed my mind as well! :D

Looks like it was good buying at 0.55, pity I didnt buy any :rolleyes:

I bought a bunch at 0.54, which i determined to be a good value buy price and the bottom. As long as they don't get another contract, there could be another opportunity. I wanted to buy more, but i haven't had another opportunity. Im going to wait now.

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Originally Posted by Lewylewylewy

I bought a bunch at 0.54, which i determined to be a good value buy price and the bottom. As long as they don't get another contract, there could be another opportunity. I wanted to buy more, but i haven't had another opportunity. Im going to wait now.

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Well done Lewy! Thats awesome! :D i tossed up whether to buy more @ around 0.55 but chickened out. Will be waiting and ready if it goes back down again though :cool:

I've been comparing various companies in this sector and have gone with IMEXHS (ASX:IME). The reported financials are very similar to M7T but currently only 40m market cap.As far as I can tell they both have a good sales pipeline ahead.

Anyone else compered these two and come up with a different view to mine?

Their distribution channel looks nice.

It's difficult to know how profitable it will be next year, because it's hard to know when they took on all that extra cost. If it was at the start of FY, cost of sales (if you include note #5 items) will be low, but if those came late in the year, costs are high.

Gut feeling is that it'll be good, then better next year.

Thanks for the tip, I'll pick some up on Monday.

Got something in the mail today that i skim read. Looks like they're looking to raise funds. That won't do the SP any favours.

Appendix 4C out this morning.
SP up 18% in the 1st half hour of trading.
The 4C figures look good. Great positive cashflow.

From the business update announcement... "Notably, cash receipts for the quarter did not include any receipts from Hospital Authority Hong Kong"

That's my favourite line.

M7T, still in guys? looking very good to this left behind watcher atpit. Taking a breather at 98c today.

Mach7 to Acquire Client Outlook and Launch Capital

Client Outlook Acquisition and Capital Raise Presentation

I am a recent arrival to the M7T register but I am enjoying the ride at the moment and applied for my full rights plus 50% extra.

Im frustrated that the offer it's only open to Australian bank holders.

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Originally Posted by Lewylewylewy

Im frustrated that the offer it's only open to Australian bank holders.

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I am a holder and applied for my full rights amount plus 50% extra. I am not an Australian bank holder but ASB securities did a BPAY payment for me. I assume my application went through ok doing it this way :confused:

Yes i found this out today. Irritating. My bank told me it wasn't possible. I should have asked my broker.

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Originally Posted by Lewylewylewy

Yes i found this out today. Irritating. My bank told me it wasn't possible. I should have asked my broker.

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hmm thats a buggar. I only found out I could do it through ASB securities because I Googled it. I had never heard of BPAY before and when I rang ASB securities they sorted it out for me straight away

So now time for those who are so inclined to realise the profits on their new $0.68 shares and those who are differently inclined to try and buy them at a good price.

But hopefully we will be back to up, up and away before too long.

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Originally Posted by Snow Leopard

So now time for those who are so inclined to realise the profits on their new $0.68 shares and those who are differently inclined to try and buy them at a good price.

But hopefully we will be back to up, up and away before too long.

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I think I am differently inclined Snow Leopard :D

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Originally Posted by Snow Leopard

So now time for those who are so inclined to realise the profits on their new $0.68 shares and those who are differently inclined to try and buy them at a good price.

But hopefully we will be back to up, up and away before too long.

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Yep s/p has come back to re 85c, i may be lucky this week.

Yep im in with you guys after two trades

"Mike Lampron, CEO, commented: “The acquisition of Client Outlook by Mach7 is an exciting time for our customers who can benefit from having a complete enterprise imaging solution sole provider. Client Outlook’s eUnity viewer is a highly complementary technology to Mach7’s own enterprise imaging platform. Furthermore, the acquisition delivers additional earnings growth opportunities from a significantly expanded addressable market and a much larger customer install base.”

Welcome aboard JT, enjoy the roller-coaster ride.

4Q announcement out and it reads well.

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Originally Posted by Snow Leopard

4Q announcement out and it reads well.

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Yes I am a happy Bear :)

Michigan Medicine Selects Mach7's eUnity SMARTviewer to ...www.globenewswire.com › news-release › 2020/08/05



three hospitals, 125 clinics and home care operations that handle more than 2.3 million outpatient visits a year, as well as educate the next generation of physicians, health professionals and scientists in our U-M Medical School."

Looks like this one is starting to fly post annual report. turning a positive ebidta and good revenue growth after acquisition of eUnity

Results out.
Share price up

I think the two may be connected.

https://video.cgtn.com/news/2020-05-...e21630bb41.jpg

Some insider buying on the market today. Good sign.

Good day all round for my tech specs,
but the chart for this is well worth watching:
Attachment 11979

A couple of days of new highs on the back, presumably, of the Trinity announcement.

I am liking this :)

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Originally Posted by Snow Leopard

A couple of days of new highs on the back, presumably, of the Trinity announcement.

I am liking this :)

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I am liking this as well :)

Todays announcement looks good for maintaining the upward momentum.

https://www.sportsflagsandpennants.c..._116970sma.jpg
source

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Originally Posted by Snow Leopard

Todays announcement looks good for maintaining the upward momentum.

https://www.sportsflagsandpennants.c..._116970sma.jpg
source

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To infinity and beyond sounds good to me :cool: