TSK - TASK Group Holdings

[whatsup]

All those D Ters who bought this morning hoping for a bigger trade are now dumping, hard way imo to make a dollar !!

[pg0220]

Half year revenue for this year = $8m
Half year revenue for last year = approx. $5m (50% increase in revenue)
Full year revenue for last year = $11.5m
Second half year revenue for last year = $6.5m

So their revenue by period has been on growth steadily, but seems at a higher rate recently. If this continues, the full year revenue for this year could be around $18m.

Their market cap is at $21.5m according to ASB, which will be approx 1.2x based on revenue of $18m. I know with the recent market correction, it may sound irrelevant, but they seem undervalued based on this?

It also sounds like they are on a further growth with sales forces in US and account manager in Europe..... I think there just too many people got bored with holding shares in this company..

[whatsup]

Slow but steady trading since yesterdays ann, good to see that the S P is nearly back to yesterdays high of .24

[Leftfield]

Slow but steady trading since yesterdays ann, good to see that the S P is nearly back to yesterdays high of .24

Liked the update. T/A looking v positive. I'm in.

[whatsup]

PLX being rerated now, don't expect a major rerate but we are off the bottom, Im picking mid .30's

[Brain]

PLX being rerated now, don't expect a major rerate but we are off the bottom, Im picking mid .30's

That is where I think fair value should be. The market is generally very pessimistic and suspicious of all shares and until that changes maybe we will not see a significant rerate.

[mikeybycrikey]

PLX being rerated now, don't expect a major rerate but we are off the bottom, Im picking mid .30's

I would agree with that. PLX has had a pretty long and uncertain journey to get where it is today. The profit has been coming for a while but I'm still uncertain about the longer-term prospects. It will need at least another couple of good results before there is much of a turnaround in sentiment.

My major concern is how sticky the customers are. They don't appear to have that many customers and what happens if one or two large ones leave? They seem to have developed long-term relationships but it's still a worry for me.

Also, I don't see the profit increasing any time soon. They basically said as much in the interim report: "The continuing growth in the Company’s revenue [...] has given Directors the confidence to accelerate investment in Plexure’s technology platform and its people ...". So, expenses are going up..... but who knows if that will lead to profit.

[silverblizzard888]

I would agree with that. PLX has had a pretty long and uncertain journey to get where it is today. The profit has been coming for a while but I'm still uncertain about the longer-term prospects. It will need at least another couple of good results before there is much of a turnaround in sentiment.

My major concern is how sticky the customers are. They don't appear to have that many customers and what happens if one or two large ones leave? They seem to have developed long-term relationships but it's still a worry for me.

Also, I don't see the profit increasing any time soon. They basically said as much in the interim report: "The continuing growth in the Company’s revenue [...] has given Directors the confidence to accelerate investment in Plexure’s technology platform and its people ...". So, expenses are going up..... but who knows if that will lead to profit.

Their main customer and biggest by far is Mcdonalds, which has taken over 12 months to fully implement everywhere around the world in many places and then time taken to gain traction for the app, with revenues increasing its definitely a good sign of traction. Mcdonalds should be happy so I think these guys have a customer for the long term.

[whatsup]

Their main customer and biggest by far is Mcdonalds, which has taken over 12 months to fully implement everywhere around the world in many places and then time taken to gain traction for the app, with revenues increasing its definitely a good sign of traction. Mcdonalds should be happy so I think these guys have a customer for the long term.

and Im sure that there will be other customers watching as to how successful the McDonalds relationship turns out and if positive it could be a "me to" decision/relationship for others.

[silverblizzard888]

and Im sure that there will be other customers watching as to how successful the McDonalds relationship turns out and if positive it could be a "me to" decision/relationship for others.

Well the fact that they have IKEA too means these guys can get big brand names if they put their mind to it. They failed in the past by trying to move too quick, spending too much and trying to pick up too many customers with no substance, which it seems their customers either didn't need the apps or didn't understand how the apps could of help them. They do have to be very particular how they chose their customers so that they have a long term sustainable relationship. Its no point getting a customer for the sake of it if the app they build for their customer can't help the customer increase sales. They are better off targeting businesses that have a dedicated client base who would solely have the app because they love the brand.

The cashflow for this business is incredible too. Nearly $2.2 million in 6 months positive cashflow, I'd say this could borderline on being a cash cow if they can just keep a consistent performance. $27 million market cap, so more reward than risk in this ride.
Looks like the share price has been slowly picking up, if they perform consistently or increases on their performance the market will all be scrambling to get on this boat. We could have a $60-100 million company in market valuation in the next 12 months if they perform consistently.

Not to mention how little stock is on for sale, if the crowd came in there wouldn't be much liquidity, which kind of makes it a good thing if those convertible bonds convert to shares.