Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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what's encouraging is that Koch really understands how a business should be run (pretty much across all markets/sectors)
I'm now going to scale back in...
Thanks both. Interesting previous holding / businesses aren't tech, but as you say a serious player.
Wonder what he saw in cns?
serious pedigree
Interestingly I think the holdings update is because he’s sold 700k worth. On CNS website, holders were updated on 11th Jan. He held 30,061,222. 6.01%
I think he has taken most of the shares off Miton at some point. Miton were selling and had 24.6mm at end of July per RNS. But I don’t see an update after that. They’re no longer listed.
I think this is Richard
https://twitter.com/richardkoch8020/status/1620889173736693760?s=46&t=YP7J4l6vmyFpQJrdhz4b1Q
Dartron.
On revenue you need to look at the gradual move from perpetual to recurring revenue, this is key. Look at ARR and contracted backlog, the haven't set of still it's just the rate of growth is slower. Renewal rates are top quartile.
Recurring revenue is valued at a multiple of perpetual in share cap.
They don't make acquisitions as they are in a small element of the cyber security market with an increasing but small TAM compared to the whole market, if you takeover a rival you then have two competing products / market uncertainty / management focus on integration rather than customers / employee worries. Most takeovers in tech simply don't work and destroy value.
No r&d budget???? They are within operating expenses.
Sales are focused on orders more than revenue, sales become effective after about 6 months and new hires may be new customer focussed.
A software / SaaS company is very highly levered, with a high % of incremental revenue going to the bottom line - you can work out breakeven based on a relatively fixed cost base.
Anybody know who this is, background, other investments?
On the plus side, they have stood still, rather than gone backwards, with revenue similar to 2021. Corero has 70 employees worldwide, I think the issue is that the admin costs, especially the development costs, make this company un profitable, hence why no takeover acquisitions. They had $5M cash from TU, so I expect this to have reduced in the next update. If that is the case, its just existing off placings. Are they going to manage to keep abreast of cyber developments with no R&D budget? How has the recent new hires to increase sales worked, with revenue down?
Jan 2022:
Tanya will be based in the US and will be responsible for managing Corero's global sales function including the further development of Corero's go-to-market strategy, as well as the management of key strategic accounts and the Company's indirect channel.
I like the company and the management, but unfortunately, this is similar to other tech companies that are excellent, but not profitable - BIRD springs to mind. I dont think I would buy back at any price, as I dont see a profit here.
Jens has a large enough percentage, can't see it becoming private. Just looking at Juniper it's not actually that acquisitive compared to most large nasdaq tech companies - but plenty of fire power of it wanted to.
Despite the revenue miss some good points from the trading update - ARR, retention rates, $ value rather than number of new customers, total orders etc.
Need to understand cash and see the full annual report.
Hopefully company specific factors can raise the price as well as a re rate of AIMs tech small cap and nasdaq rising.
you have a good point about lack of interest from Jens or Jupiter
there must surely be an sp at which this is a buy??
But perhaps I should wait for sales growth momentum to return
...if it returns lol
I wanted to ask you Jolly, why you would even to buy at 7.5p. What do you see as upside.
Even with the sales level, the cash is decreasing: Cash at 31 December 2022 was $5.6 million (31 December 2021: $11.2 million). If the burn rate was the same then that wont last another 12 months. Plus they have some debt.
Best thing for this would be a buy out, but you might not make much profit at 7.5p IMO.
Juniper and Jens, have so much cash there must be good reason why they dont want it. I'd guess the staff / development costs must be huge for this, in an ever evolving tech environment. I have no intention of bailing them out.
yes, echoes my concerns
I need lower sp to justify risks
My TA if interested
https://twitter.com/DartronTrading/status/1615332380176224259?s=20&t=ShUMCZNrlFXeLqleQtTUsg
Not had a chance to read it yet, though its obvs lower revenue. I sold last week at 9.26, due to price action. I think the 'market' knew what was coming. Have to wonder, with the company being so old, and not breaking through by now, or being bought out by Juniper, or being taken back private by largest share holder, will it ever?
pretty lacklustre
might get 7.5p if I'm lucky
want sub 9p
and may still get opportunity
Yes it’s unfortunate that ARR does not yet make up a very large % of revenues. It’s also unfortunate that they have ramped up sales and marketing this year but don’t have the sales to compensate. Hence revenues expected to be up slightly but EBITDA down a lot yoy.
On the flip side their strengthening of relationship with Juniper recently should prove valuable
Orders of between 15-25% is a pretty large forecasting leeway - still want the mix of renewals / new as well as the perpetual / sass mix.
Weak update, but not entirely surprising. I questioned the viability of the FY22 revenue forecasts in broker quotes at the last investormeet, as they needed to hit $20mm in H2! They seemed confident of the growth.
Cheers Jolly.
Always interesting to see what other posters (sensible ones not the loons) are looking at.
Have gbg on my short watch list, seems cheap now and may take a position payroll day next week.
Took an interest in rws a while back as they took out sdl from my home town maidenhead.
As well as a decent punt on their own, I think I a lot of US companies must be sniffing around those with global revenues especially cyber.
don't know what happened with that post lol
GBG EV would be
GBG interests me.....eyeing £2.80 ish...wd make EV
also tempted by RWS...c£2 ...wd make EV c US$800m (EV/rev <1; pe<10)...lower growth potential, but seems like cheap utility pricing for well entrenched incumbant
Jolly.
At $21m and £ tanking v dollar cns isn't too far off, also profitable, decent cash / balance sheet and decent growth / move from perpetual to saas. Share price a bit marooned 10-11.
What did you get into ?
had to sell 30k given the huge drop in software comparators...still hold >100k
you can buy quality at 1.5-3* rev elsewhere