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VOR - Vortiv Limited

System

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Transaction Solutions International Limited (TSN) was formerly known as QED Occtech Limited (QED).
 
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Well, a very tightly held stock, approx 70% from memory held by directors, jv partners & european banks. no debt and rising ATM's in India. Seems like a good story.:cool:
 
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Difficlt to get an idea of value on this one, given the last annual report (QED) only included a 17.6% interest in TSI (now 100% since Sept).

The Oct revenue figure of $674k on 350 ATMs is released as an ann, with the 43% increase in ATM nos in India as per announcement this extrapolates to $963,820 or $11,565,840 pa in revenue (again, the lack of prev. yrs financials makes it hard to judge any profit margin/fixed overheads).
Extrapolated gross revenue vs shares on issue (~1.373m) gives a 0.84cps on gross revenue with 500ATMs, not sure at what point they become profitable.

Not compelling me to buy but one for the watchlist.
 
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Thks Mofra. Lack of previous reports is an issue. Keeping an eye on this. I feel (and that is all it is ) it might run in the new year. All the best.
 
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This story is of major interest to me. I found this company a while back and have kept in touch with their announcements. I have also purchased some shares in this company (my own disclosure). TSI code (tsn on the asx) basically puts in ATMs for the Indian banks in India- they almost act like an ATM outsource firm for the banks and they get paid by the banksprimarily on a per transaction basis.

Up till now they have secured contracts with Punjab National Bank, Tamilnad Mercantile Bank and HDFC Bank. They had 525 ATMs fully operational and had ATM contracts to come with HDFC and Tamilnad, from my understanding they are putting in another 100 machines for HDFC and 100 for Tamilnad which should take them to 725 machines soon.

I like the fact that this company has a scaleable business, that is the more contracts they win, the more machines they put in place, the more transactions they get and the more revenue is generated. I also like the fact that they are in India. India has a massive population with an increasing middle class. The stock last traded at 1.3cents.



Disclosure: I am a shareholder in this company. I am not a financial advisor and I am not making any recommendation in relation to this or any stock nor should you depend on the contents of my post in relation to making any investment. If you want to make an investment please do your own research or consult a qualified professional before proceeding. You should always be responsible for your own investment decision.
 
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Thought of you, Telamelo, when I saw this chart today. TSN is into ATM's like STL.

Nice high volume break higher. The weekly chart shows that price is in a corrective move after a huge impulsive move up. I'd classify this buy as a daily break-out in a weekly pull-back. The RR is pretty good if price gets back the the old highs.

I won't be buying this as there are too many issued shares (1.945 billion of them).

tsn0609.PNG
 

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On September 20th, 2019, Transaction Solutions International Limited (TSN) changed its name and ASX code to Vortiv Limited (VOR).
 
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An interesting micro cap company that is slowly increasing profits - there's not many companies at this share price that actually are making a profit. Their quarterly reports a 73% year on year increase in receipts bundled with 7 consecutive quarters of positive cash flow.

One of there mainstays is Cloudten, which is the first AWS Consulting Partner to attain Government Competency. Yeah sounds like publicity but then recently it has been announced that AWS has a new whole-of-government cloud agreement. Worth a few dollars that and something CloudTen will get their teeth into for a slice of the pie.

This just scrapes in for the tipping comp, currently 1.2c/share, but it has the ability to increase a fair amount in the near future - especially if a few contracts are announced. Hopefully this will happen in November!
 

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I have been have an in depth look at this business the last couple of days, I backward engineered my valuation based on it being able to sustain a reasonable path of revenue growth (noting that it is dropping), I backed out the impairments due to the revaluation of the ATM business and the remaining payment for the acquisition and it looks like the business is Free Cash Flow positive and profitable. Even a very conservative runway of growth puts it in a position that justifies the current share price based on FCF/earnings.

In the end there were two issues for me that stopped me investing, the first is the sheer amount of direct competition in the space, AWS partners are a dime a dozen and growing by the day, I looked at about a dozen direct competitors and its really hard to see any competitive advantage for VOR and hence I think both margins will be squeezed and growth must slow dramatically. Secondly, the massive amount of options issued added a level of uncertainty to any meaningful valuation that was outside my comfort zone.

So this is one I am not investing in, I may miss out on some short term gains, but in the long term I dont think its a business that would be conducive to a good nights sleep!
 
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@galumay Good post even though I didn't understand your first paragraph. ;)

VOR (TSN) has been in my spec list for years and the trading opportunities have been sparse. My last post mentioned the large number of issued shares, 1.95Bill, now there are 2.68Bill. I'll never trade a company with so many shares.
 

galumay

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LOL! @peter2 - if you understood 2 of the 3 paragraphs then I will take that!

I would expect there will be a consolidation at some point, probably once they feel there is no liklihood of further capital raises.
 

greggles

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VOR jumped up 25% to 1c on Friday on volume of around 53 million shares.

I have no comment on its business operations, but feel there may be a little more short term momentum in VOR. On that basis I have chosen it as my entry in the December stock tipping competition.
 
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Country Lad

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Vortiv have had a recent consolidation - for anyone noticing the current price (17c) vs the price in greggles post above is markedly different.
Curiosity got the better of me after the 26% jump so I had a quick look.
I don't know much about this company other than it is part owner of an ATM business in India which it is looking to divest to concentrate on cyber security and cloud based serves.

I assume it is this latter activity that caught the market's attention from its business update report, particularly as it is in India with possible growth opportunities.

The recent consolidation was 1:20 so in theory, the price has gone backwards since @greggles comment above as to be on par it should be 20 cents. Interesting to see whether their cyber security direction will bear fruit against the established competition and all the other wannabes in the marketplace.
 
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Well for anyone watching, VOR had a little boost during June but fell back towards the end of the month.

I still believe this stock to be quite undervalued and hope the market believes the same thing. Some market "experts" have VOR on a buy list eg: Red Leaf Securities. Generally though, I don't automatically believe these recommendations.

VOR's 3 core businesses, Cloudten, DWX, stake in TSI India easily are worth 2/3 of the market cap, most probably more in today's money so I think the company should see a share price increase soon. Well I'm hoping real soon, like July as it's my pick again for the tipping competition.
 
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• Vortiv on track to deliver revenue and profit growth driven by cyber security requirements of Government and financial institutions
• With 72% of Vortiv revenues coming from government and financial institutions, the Company is well positioned to offer its existing clients, solutions to the recent cyber threats. According to Government, a greater spend in cyber security is essential.
• Vortiv 25% passive investment in TSI India revised to $5.5 million. EBITDA of $2m, up 11%


VORTIV CYBERSECURITY BUSINESS
... Vortiv's cybersecurity business is on track to deliver revenue and profit growth. Strong demand from customers, primarily the government and financial institutions, will enable Vortiv to deliver another quarter of record growth. Revenue in the June 20 quarter is expected to be $3.6 to 3.8 million, while EBIT is expected to be $0.5 to 0.6 million.

... Vortiv strategy is to continue to pursue the high growth cybersecurity market. To date Vortiv is in a strong position to benefit from increased market growth driven by cyber security requirements.

... Vortiv’s focus on both government and financial institutions, which represent 24% and 48% of the company’s revenue respectively, proves to be sound as both sectors continue to invest significantly to enhance their cybersecurity technologies, especially in view of the recent cyber threats. Vortiv, which is on the supplier panel of the federal and all state governments, expects to benefit from this opportunity
.

Bought into VOR at 23.5c today. There is another initiative soon
Scott Morrison will on Thursday unveil a new cyber security strategy, boosting spending to $1.6 billion. Mr Morrison said the strategy made cyber security a fundamental part of everyday life, so Australians could reap the benefits of the internet and the digital economy safely and with confidence.
I like VOR rather than the other players (TST, WHK and even HWH). Making profits. No debt. Original founders of DecipherWorks and CloudTen have major roles in VOR.
• Strong repeat business, recurring revenue stream and cross selling from loyal customer base
• Increasing average spend for the top 10 client to ~$1.0 million per annum per client
• Increasing demand in the cloud and cyber security market
 
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Investor presentation out ....nothing really new

In FY21, VOR expects:
• Revenue growth
• Margin expansion
• Profit growth
• Strong sector demand outlook
• Strong organic client growth of 25-30%
... Continued focus on large clients in target industries: banks, insurance, government, utilities and education
... Cross-selling and deeper penetration into key accounts
... Expanding geographic presence in Victoria and Canberra

plus Potential latent value asset realisation (the Indian TSI holding), and
Potential opportunistic, accretive acquisitions. (cash at 30 June is low)

Ordinary shares ..... 139.5m
Market capitalisation .... $33.5m
Cash on hand (30 June 2020) ... $2.4m

RELATIVE VALUATION DISCOUNT
• EV/revenue multiple of 2.6x, which is a 56% discount to its ASX-listed peer group average of 5.9x ...... (And, profitable compared to peers).

(HOLD)
 
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A bit of speculation. Govt announced 1.6bn funding for cybersecurity and Vor as well as a few other asx companies are primed to offer their services. World wide issues including malware, US China relations, I think there a tech battle and not a cold war, how else are we going to stimulate the economy?

Disclaimer: I have holdings in AR9 and VOR
 
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Vortiv Limited (ASX: VOR) advises that the holders of Convertible Notes that matured on 15 September 2020 elected to be repaid the face value and accrued interest on the Notes.

The six Convertible Notes, issued 15 December 2017 and extended on 15 December 2019, had an aggregate face value of $590,000 and were convertible at 22 cents per share (refer to ASX announcements 13 December 2017 and 16 December 2019). Total interest of $174,611 had accrued and was payable on the Notes at maturity.

- some jockeying going on this morning (consolidation at a lower level)

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