TSK - TASK Group Holdings

[Leftfield]

What are the differences between PLX and SKO?

After the recent soar in SP, I wasn't sure if they are now fairly or undervalued. I had a look at SKO, just to see what its financials look like.

SKO' last FY revenue $18m and $1m NPBT. Guaranteed for growth in future and market cap at $250m.

PLX's projected FY revenue at $16.8m and profit around $1m, and that was before the Macca's investment into the company announcement. PLX's market cap is only $68m but they are expecting the similar growth as the last few periods to continue.

I know that SKO has sexier technologies than PLX, but it looks to me that PLX is still much undervalued when PLX now has money to invest into their platform and technologies for potential customers out there.

Anyone other thoughts there? Just want to see what other views are.

I'm no expert, but IMO the difference comes down to the number of shares on issue (SKO - 80mill v PLX 139 mill) plus NTA per share (SKO at 25.4c v PLX at 1.75c) plus forward revenue projections which are higher for SKO than PLX.

Market SP valuations are often loosely based on EPS x P/E. The big question is what is a fair future P/E for each company?

That said, I hold both and have high hopes for both. GLH!!

[pg0220]

I'm no expert, but IMO the difference comes down to the number of shares on issue (SKO - 80mill v PLX 139 mill) plus NTA per share (SKO at 25.4c v PLX at 1.75c) plus forward revenue projections which are higher for SKO than PLX.

Market SP valuations are often loosely based on EPS x P/E. The big question is what is a fair future P/E for each company?

That said, I hold both and have high hopes for both. GLH!!

Hey thanks for your thoughts. I am aware of a difference in the number of shares and that was why I was looking at a market cap instead. Yeap, I know that I was referring to the last FY's revenue for SKO and sure their revenue project is higher for this year - but I think it is at a growth rate of 20~30% per year? That was why I think PLX is still quite undervalued based on its financials and the recent announcement. I found that for those tech companies either trying or started making profits, EPS and PE don't quite apply.... I hope market gets woken up to PLX more!!

[Leftfield]

Hey thanks for your thoughts. I am aware of a difference in the number of shares and that was why I was looking at a market cap instead. Yeap, I know that I was referring to the last FY's revenue for SKO and sure their revenue project is higher for this year - but I think it is at a growth rate of 20~30% per year? That was why I think PLX is still quite undervalued based on its financials and the recent announcement. I found that for those tech companies either trying or started making profits, EPS and PE don't quite apply.... I hope market gets woken up to PLX more!!

I share your hopes!

IMO the McD's buy-in is more than just a 'blocking' stake. McD's are in a unique position to know their future roll out plans for the PLX service enhancements which in turn means McD's can estimate PLX's future earnings better than you or I..... and as share holders/investors they stand to gain a lot of $$'s as the PLX SP rises. (Reminds me of the ATM/SML buy-in and what has happened to both since that time!)

Sssoo exciting times ahead with tab of short term risk until we start seeing genuine results coming through.

( Disc; My 'risky' holding in PLX is up over 30% today which is much better than my boring 'safe' div yield OCA stock with is the only red arrow in my portfolio!!)

[Schrodinger]

I'm no expert, but IMO the difference comes down to the number of shares on issue (SKO - 80mill v PLX 139 mill) plus NTA per share (SKO at 25.4c v PLX at 1.75c) plus forward revenue projections which are higher for SKO than PLX.

Market SP valuations are often loosely based on EPS x P/E. The big question is what is a fair future P/E for each company?

That said, I hold both and have high hopes for both. GLH!!

Number of shares is irrelevant. What actually is important is the market cap v revenue and forward growth rates. The previous posters are correct that PLX is undervalued. I also think SKO is overvalued

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[Schrodinger]

I'm in two minds. Getting macdonalds buy in is certainly a big vote in favor of the potential technology. The tech gong into QSR is amazing and quite worrying.

The thing I dont like about the buy in is the restraint to only apply it to MD's. There are loads and loads and loads of QSR's out there. Seems to me PLX are limiting their market to a known revenue stream.

I agree with this. The other side to this is that they become essential to Maccas and then get bought. There is still a long way to go for their Mobile platform. Also if Maccas does kick em what is the restraint on IP for hooking up with Burger King and Wendy's? I think this risk alone will secure a long term agreement between the two.

Most likely is a full takeover however they need to add revenue quickly so there is a 20x multiple.

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[Schrodinger]

On that I am quite confident. There will be no full takeover. It is not Maccas core business. As things in the QSR world evolve they will simply move to the next supplier that can provide what they want.

And yet they bought a nearly identicial company. I dont agree.

Have a look at the CEO comments. Digital is core and therefore they will bring in house.

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[Timesurfer]

And yet they bought a nearly identicial company. I dont agree.

Have a look at the CEO comments. Digital is core and therefore they will bring in house.

I agree, if you are talking about Macca’s core business you are talking about realestate.

The close relationship does tend to suggest a limiting factor to me. Different if they had similar relationships with other large companies. The comparison was made between PLX and SKO. Where I like SKO or IKE is that they are situating themselves as the industry standard - something that McDonalds also did. I am not sure I see PLX stepping up to that level?