Dropsuite Limited

Drop in paid users in September quarter: Dropsuite Limited (ASX: DSE) presented its quarterly cash flow report for the period ended on September 30, 2018. There was a decline in the paid users by approximately 420,000 in the month of October. Deactivation of the users who were not actively utilizing their email service was done by one of the partners from Latin America. 64% year-on year growth in total paid users up to 350,000 was estimated for November 30. On the other hand, 53% decrease from 750,000 paid users was reported on September 10.

Moderate Financials:The group estimated a 44% drop in the annualized recurring revenue as at November 2018 against the figure reported around 10 September, while there was 32% rise in the cash receipts from sales up to $1.13m from $857000 in Q2FY18, with positive cash flow of $83000 in the month of September and modest EBITDA estimated for Q3. Diversified partner base launch of new partnerships, low and stable operating expenditures, cash reserves and the recurring revenue base is expected to help the company in the long run to face any unexpected events.

Technically, the scrip is trading at lower lows and at the lower end of the bollinger bands. Major indicators like relative strength indicator represent entry in negative territory. At current juncture, the scrip looks good to hold and watch. The market cap of DSE was recorded as $21.13m, as on November 1.At current juncture scrip is trading at the price levels of $0.045, up 2.3% after dropping significantly in last five days. Moderate financials with the drop in the number of paid users along with diversified base and new partnership launches exhibit a mixed outlook. We give a “Hold” recommendation at the current price levels of $ 0.045.

Yojee Limited

Healthy Quarterly report: Yojee Limited (ASX: YOJ) has presented its quarterly activities report for the quarter ended on September 30, 2018 on October 30, 2018. There was a 7% rise in revenue up to A$173K as reported on quarter on quarter basis and 87% rise in cash receipts up to $118k was reported based on quarter on quarter basis. This growth was supported by the increased sales activity from the eight new companies that signed the contracts during this period as well as recent upgradation to the platform with the release of version 3 of the dispatcher platform ’Kairos’.

Strong Customer base:Eight new companies comprising of two national enterprises and six SME’S signed the contract with the company during the quarter to start using Yojee’s innovative software. The company now has 32 SaaS customers and development partners with their presence globally in Enterprise and SME space. The company can very well cater for organizations of varied size and type.

Technically, the scrip has remained in a bearish trend from the start of the year and at current juncture after remaining in flat zone, the scrip has finally shown some upside. On a time frame of 6 months, the scrip is trading below the mean deviation of the bollinger bands with wicks indicating slight rejection on upside. The market cap of YOJ was recorded as $76.27m, as on November 1. At current juncture, scrip is trading at the price levels of $0.084. Strong quarter growth with diversified customer base gives a positive outlook for the company for long term and technically the price patterns are indicating rejection on upside. We give a “Hold” recommendation at the current price levels of $ 0.084, down 6.7% on November 01, 2018.

SportsHero Limited

Launch in Malaysia: SportsHero Limited (ASX: SHO) has recently signed an agreement with Malaysia’s largest retail payment network ‘e-pay’ on October 26. The core focus under this agreement is to launch SportsHero into Malaysia’s wide community of passionate sports fans. The contract agreement is for a period of 2 years in the initial stage. Per month 20 million payment transactions are done through e-pay processes. SportsHero's Malaysian localized app will be launched in January 2019. The company will receive around 80% of the gross revenue generated from the ticket sales.

Strong partnership association:The company has well established partnership with Walletku that enables SportsHero to connect its platform to over 20,000 merchants throughout Indonesia. World cup campaign helped the company to monetize and generate over 160,000 tickets contributing around $157k in gross revenue over the four-week World cup competition. Company has partnership with the most popular sporting leagues, Spain Laliga.

Strong quarterly Growth:$229k of revenue was generated for the quarter with $157k in gross revenue contributed by the World cup campaign. Technically, the scrip is in downtrend from the month of August. The scrip is making lower low on the price charts and touching the lower bollinger band. Major indicators reflect for a sudden move in the price levels in near term. The market cap of SHO was recorded at $33.21m, as on November 1. At current juncture, scrip is trading at the price levels of $0.125. Strong association with the partners, along with decent quarter data and trading at lower end on bollinger as per technical charts, exhibit a “Speculative Buy” scenario at the current price levels of $ 0.125, down 3.8% on November 1, 2018.
 
 

 
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