ClearVue Technologies 

CPV Details

A bit overvalued at current juncture: ClearVue Technologies Limited (ASX: CPV) posted higher revenue and other income in FY18 at $507,511 compared to $62,922 in FY17. However, loss for the period moved to $3,441,590 in FY18 compared to $1,334,455 in FY17. It was mainly impacted by the rise in administrative expenses, project costs, and finance costs during the period. As of 30 June 2018, the company enjoys virtual debt-free status along with decent cash & cash equivalent reserve of $3,818,763. The current ratio stood at 12.36x in FY18 which is above the industry median of 1.34x. The cash conversion cycle was also reduced from 1004 days to 46 days in FY18 over PCP because of lower account receivable days - indicating that the management is doing well towards its collection policy. Besides this, the company has recently issued 1,860,000 shares upon exercise of Options at $0.25 per share for total receipt of $465,000 expiring on 21 June 2021. Further, the company’s Executive Chairman, Victor Rosenberg had offloaded 250,000 ClearVue shares via on-market trade. It equates 0.26 percent of the total issued capital of ClearVue.



FY18- Consolidated P&L (Source: Company Reports)

Meanwhile, CPV stock was up 433.33% in past three months and up 121.54% in last one month (as at September 20, 2018) and was down 24.306% on September 21, 2018. The group otherwise signed an MOU with yStop and another one with Murdoch University for Greenhouse Construction.

It is to be noted that the recentmovement is also related to CPV responding to ASX price query and stating that the Company is not aware of any specific information which would explain the recent increase in the price of the Company’s securities. Given the sentiments and positive developments which have been already discounted in the price because of which the stock is now moving on volatility, we give a “Sell” recommendation on the stock at the current market price of $0.545.


 
CPV Daily Chart (Source: Thomson Reuters)
 

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