SKO - Serko.com

[Ggcc]

I see this stock still overvalued. I may look at when the price comes closer to $1.50

[RGR367]

I see this stock still overvalued. I may look at when the price comes closer to $1.50

Over valued Where were you when it was under 40 cents

[couta1]

Well that was a brutal 48 hours! Gulp

Brutal week unless 100% of your portfolio is in the likes of HLG, the only stock that's kept my overall portfolio in the blue.

[hardt]

Two different animals. I never understood what Snakk actually did apart from possibly being an advertising agency and also the Handly factor is a distinct negative.

Plexure have disappointed the punters in the past but a new CEO and with the cash burn ending the optimist in me tells me it will be different this time.

I probably should have emphasised the word punt. At this stage of the game both Plexure and Serko are exactly that and any money on these is money a punter should afford to lose.

Very low variable costs that come with new revenue, stagnant fixed costs and all that revenue growth... this is looking like a 30-40% EBITDA margin business in the making.

Their margins, a 25-35% revenue growth trajectory and cashflow is something we all should want to be a part of.

Conservative estimates have them packing 3-5m EBITDA on the back of a 6-9m increase in sales in FY19.

The absurdness of insanely high ratios dissipates very quickly with rapidly growing revenues surpassing a fixed cost base.

Serko is not a punt.

[Ggcc]

Over valued Where were you when it was under 40 cents

Never knew this share existed until everyone else noticed it. Plus no more new kiwi tech companies on my radar

[Brain]

Very low variable costs that come with new revenue, stagnant fixed costs and all that revenue growth... this is looking like a 30-40% EBITDA margin business in the making.

Their margins, a 25-35% revenue growth trajectory and cashflow is something we all should want to be a part of.

Conservative estimates have them packing 3-5m EBITDA on the back of a 6-9m increase in sales in FY19.

The absurdness of insanely high ratios dissipates very quickly with rapidly growing revenues surpassing a fixed cost base.

Serko is not a punt.

Clearly from what you have written above this one is an absolute certainty. A mortgage on the house should be the only course of action.

[kiora]

Can I suggest if one looks one will find

[Balance]

Very low variable costs that come with new revenue, stagnant fixed costs and all that revenue growth... this is looking like a 30-40% EBITDA margin business in the making.

Their margins, a 25-35% revenue growth trajectory and cashflow is something we all should want to be a part of.

Conservative estimates have them packing 3-5m EBITDA on the back of a 6-9m increase in sales in FY19.

The absurdness of insanely high ratios dissipates very quickly with rapidly growing revenues surpassing a fixed cost base.

Serko is not a punt.

Good summary, hardt.

Anyone who has followed and invested in Diligent (and made huge gains) know that there are many similarities between the two companies - especially pertaining to building up recurring annuity income streams from a global base.

I will put my money anytime with management who put their own money and funds behind the growth of a business (as in Serko).

And anyone who followed Diligent will know that a stock like Serko will be volatile.

Heck, I have witnessed this stock:

- in the first year of listing listed below issue price ($1.10), dipped to 90c as flippers/punters bailed out, rose twice briefly above the issue price only to be quickly sold down by presumably relieved initial IPO shareholders,

- in the next two years, getting sold down to 28c even as the directors and institutions reaffirmed their confidence and pumped in more capital at 80c,

https://stocknessmonster.com/announc...ko.nzx-275430/

(Contrast that with all the backdoor jobs like Snakk, SeaDragon, Plexure etc where the promoters and original shareholders cannot sell out fast enough. If the business is any good, why would they sell out in such haste at every opportunity?)

- then staged the most spectacular gain on the NZX in 2017.

And yes, I know one investor who bought 300,000 shares all the way from 37c to 75c who recently sold out. Anyone with access to the share register can check that out.

And yes, good on her!

A stock like Serko is definitely not for the faint of heart and for those who invest on 'feel'. It has to be tracked and monitored carefully to assess how it is going in its business strategy - well articulated at the IPO and through regular updates.

Again, contrast that with the backdoor jobs like Plexure where it's all hype (with suitably tech-sounding PR releases to hoodwink the naive) while the original shareholders sell out.

In the end, if the kitchen is too hot, stay out.

[Ggcc]

I’ll stay out of this kitchen until the sp is simmering instead of boiling

[Balance]

I’ll stay out of this kitchen until the sp is simmering instead of boiling

Good call.

Must be comfortable when one takes any position in the market - must be commensurate with one's own risk tolerance profile.

Buy when directors buy in volumes - that's one of my guiding investing principles.

Get the hell out when directors get out in volumes in unison - another guidance to follow.