Nanocap software company with accelerating revenues (+66% LTM, record backlog), solid tech, terrific unit economics (~70% incremental EBITDA margins) and just 2% TAM penetration; $9/share target
It's interesting to note that the largest stakeholder of the IR project in Osaka is MGM. Should their product be selected, in effect, that is MGM greenlighting Casino Trac.
Great write up. Any reason for slowdown in revenue growth for the coming years? Is that just to be on the conservative side? What is your opinion on the decision to issue a dividend instead of investing back into the business such as in the sales department to amplify growth. As you stated above the quote from a former sales person, if tabletrac invested more in marketing and sales the growth could be huge, do you feel the CEO is just a bit too conservative?
Thanks! I think we have pretty solid visibility to FY23 revenues given the backlog so my figures are quite conservative for next year, I will admit. Because system sales have historically been lumpy (and they still make up the majority of revenues), I err on the side of caution.
I don't know if management is being too conservative. I'm just a guy who researches small stocks and have no idea what it takes to run a casino management software company day in and day out. I do know that people are expensive and making bad hires (in marketing & sales, for example) can be very costly for a company this size.
Amazing write up.
It's interesting to note that the largest stakeholder of the IR project in Osaka is MGM. Should their product be selected, in effect, that is MGM greenlighting Casino Trac.
Great write up. Any reason for slowdown in revenue growth for the coming years? Is that just to be on the conservative side? What is your opinion on the decision to issue a dividend instead of investing back into the business such as in the sales department to amplify growth. As you stated above the quote from a former sales person, if tabletrac invested more in marketing and sales the growth could be huge, do you feel the CEO is just a bit too conservative?
Thanks! I think we have pretty solid visibility to FY23 revenues given the backlog so my figures are quite conservative for next year, I will admit. Because system sales have historically been lumpy (and they still make up the majority of revenues), I err on the side of caution.
I don't know if management is being too conservative. I'm just a guy who researches small stocks and have no idea what it takes to run a casino management software company day in and day out. I do know that people are expensive and making bad hires (in marketing & sales, for example) can be very costly for a company this size.