Financials, what new management will bring?, page-27

The market cap is getting ridiculous, $51m.


The worst intraday performer in our reporting season series was Isentia (ISD) which has burnt investors for three long years now to sit 91% under its high of late-2015.

It fell 12.2% on day one of results, and has slipped further to be down 17.2% now. Looking past the price chart, however, Graeme Carson from Cyan called it a classic turnaround storyand wrote in ‘Turning bullish on Isentia” that:



"...The foundations of this business are solid, over 3000 subscription customers across 11 Asian Pacific market generating revenues of ~$120m in FY19 and underlying EBITDA around $20m. Debt at $40m is manageable, particularly given the strong operating cashflow, and well within banking covenants. We believe ISD is a textbook example of the “baby being throw out with the bathwater”. And really, who could blame investors who have been with the stock since listing? With a market cap well below the $100m line-in-the-sand for institutional investors but with a substantial existing market presence in its industry, ISD looks well poised to be a classic turnaround story".