Big UN Limited (ASX: BIG)

Sustainability of operations:  After performing so well in November 2017, BIG expects to achieve global cash receipts from customers of more than $22m for Q2 2018 which is an increase of 447% from Q2 2017. It was reported that October and November were record months as sales on board matched with Australian sales and now BIG is planning to further increase the size of their sales team both in Australia and the US during the next quarter and it anticipates a further 600 US customers by the end of the quarter which will result in 1400 signed agreements by December end 2017. It is experiencing its growing viewership of content, brand recognition and customer referrals and now it is beginning to experience the network effect of building a unique video ecosystem. The Company agreed to have its first sponsorship agreement with Australian based small and medium enterprise cash flow management platform Finstro, and the Company anticipates its Apple TV channel will be launched and available to public through the Apple Store and this channel will initially feature a catalogue of BIG’s SME content with sponsorship by Finstro. BIG is also planning to expand its operations on the East Cost of US. The company is experiencing continued demand for its video subscription products and the sales results for the year reflect this.
 

Anticipated 2018 Results (Source: Company Reports)
 
The Company is also in the final stage of its acquisition of the Intermediate Group’s Hospitality vertical which will provide direct relationships with over 65,000 Australian Businesses in the hospitality industry.

Considering the financial aspect, the sale revenue in 2017 was $13.49 million which is an exceptional increase of 473% at the back of strong growth in the company’s member base. Net loss also decreased from 2016 that is from $7.80 million to $4.24 million which can be attributed to a strong improvement in the gross margin to 27.4%. The purchase of BHA Media has provided BIG a competitive edge which has increased its platform to market directly to hair and beauty industry professionals, allowing the company to monetize and to grow the video technology and to advertise its opportunities in the industry. BIG is building an ecosystem to the likes of TripAdvisor and Yelp which are both billion-dollar entities.

The Company’s share price rallied by 402.2% in the last six months; and plunged by 3.8% on December 18, 2017 that appeared to be at the back of profit booking. Any substantial dip can be evaluated for an entry position in the stock that otherwise looks “Expensive” at the current price of $3.26

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