Medadvisor Ltd


MDR Details

Acquiring Healthnotes:Medadvisor Ltd (ASX: MDR) announced for the acquisition of Health Enterprises 2 Pty Ltd (Healthnotes) for a total $5.5 million in which the company paid 60% of cash and 40% of scrip. Moreover, MDR in collaboration with the national diabetes organization Diabetes Australia, has launched a new tool that allows people living with diabetes to order their consumable products and ensure accurate supply in pharmacy.
 

Gross Profit for FY 16 (Source: Company Reports)
 
MDR reported the revenue from pharmacy subscriptions and patient engagement programs (PEP) growth of approximate 24% to $1.43 million in its maiden preliminary financial report for the FY 16 primarily due to the pharmacy subscription growth. However, the overall revenue is of $1.76m which is 7% lower as compared to FY15 as it includes the final license fee payment of $500,000 under the Actavis agreement. MDR stock rose over 11.8% in the last four weeks (as at September 08, 2016). We believe that the company’s potential is yet to be demonstrated while the stocks seems to be “Expensive” at the current price of $0.038
 

MDR Daily Chart (Source: Thomson Reuters)
 
Crowd Mobile Ltd


CM8 Details

Maiden net profit in FY16:Crowd Mobile Ltd (ASX: CM8) reported a revenue growth of 192% to $37.9m (including 8 months of results from Track acquisition) in FY 16 due to robust growth in Question & Answers (Q&A) and Mobile Content Subscription divisions. CM8 has even raised A$2.4 million through a share placement and delivered A$1.0 million through Rights Issue which is partially underwritten.
 

FY 16 Financial Performance (Source: Company Reports)
 
The funds raised are used for the ongoing marketing initiatives, investments in product development and earnings growth strategy. Moreover, CM8 has signed a Letter of Intent (LOI) with SmartTrans Holdings Limited and its subsidiary SmartTrans Technology (Beijing) to form a partnership to enter into the Chinese market.  On the other hand, the rising completion, tough market conditions remain some of the concerns for the group’s stock and, we give an “Expensive” recommendation on the stock at the current price of $0.165
 

CM8 Daily Chart (Source: Thomson Reuters)
 
1-Page Ltd


1PG Details

Revenue growth and major changes at the top level:1-Page Ltd (ASX: 1PG) delivered an 89% growth in revenue for Q2 2016 over Q1 2016 revenue due to both new clients and increased product usage by existing clients. The Average Revenue per User (ARPU) grew 67% quarter over quarter (QoQ). Moreover, 100% of clients have been migrated to the back end of the Source 3.0 Solution, which resulted in a significant reduction in pool delivery time from 3-5 days to some hours only. On the other hand, Q1 sales were impacted by product delays related to staff departures. Moreover, Ms Maria Olide has stepped down as CFO for personal reasons and 1PG is actively searching for a Chief Operating Officer. Mr Varouzhan Ebrahimian is appointed as the Chief Technology Officer from 30^th August 2016. The cash and financial assets totaled A$37.8m as at July 31, 2016. Meanwhile, 1PG stock fell over 88.75% in the last six months (as of September 08, 2016) and the stock has been removed from the S&P/ASX 300 Index effective September 16, 2016 market close. Despite this fall, the potential for growth looks meek as of now. Accordingly, we give an “Expensive” recommendation on the stock at the current price of $0.26
 

1PG Daily Chart (Source: Thomson Reuters)
 
iWebGate Ltd


IWG Details

Weak bottom line: iWebGate Ltd (ASX: IWG) has completed the corporate restructure as part of its transformation and technology commercialization strategy. The group has even reduced monthly cash burn rate by 50% from 950k to 400k. Further, IWG had been undertaking changes at the board and senior management level. The Executive Chairman, James Tsiolis was announced to be the CEO on an interim basis, until a permanent CEO is appointed. Robert Hayden has joined the management team as the COO to look after all sales and operation activities. Moreover, in August 2016, IWG completed a fund rising for $8,000,000 and received $5,600,000 in tranche 1 under its existing placement capacity, and was said to receive $2,400,000 in tranche 2 after the shareholder approval.
 

FY 16 Financial Performance (Source: Company Reports)
 
On the other hand, the group reported a net loss for the consolidated entity up 33.7% to $9,919,960 in FY 16 as compared to FY 15 and no dividend is declared in FY 16. Meanwhile, IWG stock fell 63.64% in the last six months (as of September 08, 2016), and we believe the pressure in the stock would continue in the coming months. Accordingly, we give an “Expensive” recommendation on the stock at the current price of $0.042
 

IWG Daily Chart (Source: Thomson Reuters)
 
Syntonic Ltd


SYT Details

Loss grew three times in FY 16:Syntonic Ltd (ASX: SYT) has finished its acquisition of 100% of the issued capital of Syntonic Wireless, which is a Seattle-based software company. SYT has planned to expand its Syntonic DataFlex solution in the U.S. and Freeway by Syntonic solution in Southeast Asia, Latin America and the United States. In this regard, Freeway by Syntonic offered a promotion from July 20 through August 15, 2016 in the U.S. to provide 1GB of free access to Pokemon GO for AT&T subscribers. The Freeway by Syntonic application has also gained overwhelming response in Malaysia and Indonesia while broad commercialization in Southeast Asia region will be done in the coming months.
 

FY 16 Financial Performance (Source: Company Reports)
 
However, for FY 16, the net loss has increased to $659,618 from $210,846 in FY 15. The increase in the net loss from FY 15 to FY16 is largely attributable to business development expenses of $429,667 in FY16 as compared to $62,400 in FY 15. We believe headwinds to the stock would continue given the financial performance as of now while we give an “Expensive” recommendation at the current price of $0.024
 

SYT Daily Chart (Source: Thomson Reuters)

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