Stocks’ Details
 

LiveTiles Limited (ASX: LVT)

Leveraging fast-growing Artificial Intelligence Sector: In the last one month, LiveTiles’ stock rallied up 34.85% (as at January 15, 2018). The group has lately announced the launch of LiveTiles RAISE in partnership with Microsoft, and is planning to debut LiveTiles RAISE, which is its Al-powered retail solution in the New York City at the NRF 2018 Retail’s Big Show. It is a powerful solution which is built on a foundation of Microsoft and LiveTiles products including LiveTiles Design, LiveTiles Bots and LiveTiles Intelligence. It has been designed to enhance the retail experiences on both sides of the register and provides AI powered chatbots and analytics solutions for the retailers and their employees. It will deliver the information proactively across all the areas and the decisions will be made on using the most accurate and real-time data available which will increase the speed of the actions and will also reduce the costly errors. LiveTile continues to work in close partnership with Microsoft on the joint promotion of LiveTiles RAISE and the Company’s other products with the first of series of ongoing retail events which are scheduled globally.

The Company has already received a strong interest from the retail industry for its AI powered solution and it continues to focus on developing additional artificial intelligence and technology solutions to empower its employees to drive their own intelligent workplace experiences. It also announced its partnership with CESMII (Clean Energy Smart Manufacturing Innovation Institute) and this partnership will focus on promoting efficiency, growth and competitiveness in US$2.2 trillion US manufacturing Industry by using LiveTiles AI technology. LiveTiles will support CESMII by implementing its design and collaborating the software so that CESMII utilises its existing technology investments and they can bring together disparate business applications which help in improving communication and productivity. LiveTiles is also planning to work with SMLC partners to improve the interaction between man and machine using AI technology and its main focus is to deliver intelligent workplace technology that empowers the worker and delivers a true digital transformation. It also signed few agreements with State Government of Victoria to support for the establishment of LiveTiles Asia-Pacific headquarters and for developing a Global Innovation Centre in the city of Geelong, Victoria. We believe that the group has an exposure to a growing sector and there is room for further growth. We give a “Hold” recommendation at the current price of $0.46
 

Performance Summary (Source: Company Reports)
 

Appen Limited (ASX: APX)

Well positioned in a growing market: During FY17, APX completed its acquisition of Leapforce Inc. and RaterLabs Inc. This will add scale and widen the scope of Appen to enable a greater market participation at the back of a highly automated proprietary tech platform. The group will be able to leverage this platform across its dynamic and high growth artificial intelligence world and it will help Appen to become the world’s leading provider of search relevance services.  The acquisition will be accretive to its EPS by at least 35% on an underlying basis. Meanwhile, APX has completed a $25 million institutional placement and entered into a Syndicated Facility Agreement and working capital facility for a total aggregate amount of $72.6million.

The company’s full year EBIDTA for its financial year 2017 has been reaffirmed to be up 40% to 50% on the prior year. Cash Flow from operations also seem to be significantly improving due to a change in payable cycle and by improvements in the timing of the customer receipts. Meanwhile, APX stock has risen 39.34% in three months as on January 15, 2018 and is trading at a very high level. The stock looks “Expensive” at the current price of $8.65, and would be worth a watch for any dip to evaluate an investment opportunity.

Financial Summary (Source: Company Reports)

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