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SW1 - SWIFT MEDIA LIMITED


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  • 1 year later...

Apologies, As a new poster, I am still finding my way around. I didn't realise you could post by stock code. So this is a duplication of the post I lodged under microcap investing!

 

The company is Swift Networks (SW1)

 

2019 FORECAST

 

121 mill shares

Market cap $34 mill

Cash $3m, Debt $0

rev $31 mill

gp margin 49%

fixed costs $8 mill

EBITDA $5.23 mill

EV/EBITDA 7.8 X

 

2020 FORECAST

 

166 mill shares

Market cap $46 mill

Cash $6m, Debt $3

rev $45 mill

gp margin 50%

fixed costs $10.5 mill

EBITDA $ 11 mill

EV/EBITDA 3.9 X

 

Chart has bottomed nicely over the last month, and is cum 1/2 yearly results next week. I am expecting a good result. Hope you find this useful!

post-465267-1547017602_thumb.jpg

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Yep, well done to establish a thread for the company. The more information in the topic narrative (to a sensible extent) the better as Search only picks up those key words in the title box.

 

((And Admin has the ability to edit, I believe)).

-- Also 15 minutes Edit window. ...v. useful

 

and you didn't call yrself a newbie!

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So, 1/2 yearly results due out this week. I'm expecting some good numbers. They picked up 6500 contracted rooms since last reporting, according to their announcements (+10% increase in only 6 months) and looks like its gathering pace. They are now the market leader of content into closed end environments in Australia, and have become the "go to" provider according to my sources. IMO, it wont be long before their resellers AST, DXC and Telstra deliver multiple contracts (already responsible for 40% of their new wins) and this thing flies. I love recurring revenue (85%) and low fixed cost model. Just means that new wins are very high margin and risks are extremely low

Hartleys have them values at 52c....2x current price.

 

http://www.swiftnetworks.com.au/wp-content...-Ltd-181228.pdf

 

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Good question nipper. Since AST and DXC donâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢t offer this product in their own right, itâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢s a really useful hook in trying to win bigger overall business off enterprise clients. SW1 offers a standard rate to the resellers. Itâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢s up to them to then structure a price that their customers are happy with. As far as I know, thatâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢s an agreed price in Australia, but not sure about overseas and maritime. Interestingly, Telstra, (who own 35% of Foxtel), are unable to compete on price with Foxtel product and so deal directly with SW1 on those customers who want the Foxtel offering. Having said that, more and more clients are looking for curated content rather than simply Foxtel for reason of price and relevance. Itâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢s about the same margins for SW1 either way...approx 50%. Also worth noting that content is priced by the hour rather than via minimum guaranteed contracts which means SW1 is totally derisked by back to back contracts. This is a first in the industry and means SW1 pushes through the COG as a variable cost rather than a fixed cost and therefore a liability. Great dealing by the company.
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Good report from proactive investors today:

 

https://www.proactiveinvestors.com.au/compa...ion-212690.html

 

Earnings and milestones

 

Brokers and Swift investors have both responded to the potential transaction with Medical Media by looking at underlying revenue in the business.

 

Kris said, âââ€Å¡Ãƒ‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“The underlying Swift business continues to grow from strength to strength.

 

The managing director noted Swift had continued to experience a strong first-half to the 2018-19 financial year.

Kris said, âââ€Å¡Ãƒ‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“Swift has delivered on each and every promise it has made to its stakeholders whether it be staff, clients, or investors since the day it has listed (in 2016).

 

âââ€Å¡Ãƒ‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“Those promises and commitments have been reflected in the performance of the business from both an operational and financial standpoint.

 

âââ€Å¡Ãƒ‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“We have a business that has had a 900% increase in sites since listing. And it is a business that has had an over a $4 million dollar EBITDA turnaround and 458% gross margin increase.

 

âââ€Å¡Ãƒ‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“That can only come about if a business understands where itâââ€Å¡Ãƒ‚¬ÃƒÂ¢Ãƒ¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¾ÃƒÆ’‚¢s going.âââ€Å¡Ãƒ‚¬Ãƒâہ¡ÃƒÆ’‚ÂÂ

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More good news from this little battler.

Multiple wins in multiple sites. This is fast becoming the âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“go toâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ company for communication and entertainment services at mine sites. 1/2 yearly this week.

https://www.asx.com.au/asxpdf/20190121/pdf/...zd47ypqtvj1.pdf

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  • 2 weeks later...
Record profits, earnings accretive acquisition...share price does nothing. Interested in anyone elseâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s thoughts?
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Spoke to a broker this morning to get a view on SW1. All good but it seems that the market is just not interested in microcaps right now. That just confirms my thoughts that deep value exists in this space at the moment and anyone with a little patience is going to make plenty of money buying these sort of stocks.
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