Ann: Appendix 4C - quarterly, page-38

Ooh I think the market is still asleep on this one - which is an opportunity for me as I've been loading up a few more since that quarterly. Just as they were asleep on BIG when it was 20c. I remembered it was pretty lonely on the HC threads then. Unfortunately I only made a few bags on BIG and left more than a million dollars on the table. All because the sp retraced a bit and it got quiet and I didn't believe they could maintain that growth as the revenues got bigger. I only have a pitiful holding in BIG now.

In light of the latest quarter growth figures I've been doing a little bit more 'research'. Initially I didn't think much of Novatti but bought in because their Sept17 QR report showed excellent growth and management mentioned that they will be profitable in the current quarter. I thought they were operating in the already crowded remittance sector. It took me a while to grasp what they do but the more I look the more I like.

Novatti  looks to be very innovative in their technology. And it is far from a one trick pony - more like a 24 trick pony lol:



More significantly their product services the under served "unbanked" populations as well. Those sectors will see massive growth as e-commerce is becoming increasingly wide spread. I have family members residing in Cambodia who wants to order online stuff but have no way of paying for it as they don't have a Credit Card. And they are by no means poor either. So I'd assume the same problems exist in massive developing countries like China and India that Novatti operates in. Those are problems that e-voucher systems like Flexepin can solve. And if Flexepin can do well in countries like UK, Australia and Canada imagine what they'll do in developing countries serving the unbanked.


And I like the remittance market as they shouldn't have problems with cash-flow - money goes in first before money goes out. There is no inventory to speak of and no down payment or risk of a default. The margins maybe low but when you have volume and growth it is very profitable. Lots of people have been comparing NOV to BIG but apart from the innovation and growth, they operate in completely different industries. I think a more proper company to compare with might be APT. APT have grown to be a $1.2 bil+ company pretty quickly. They take clippings of around 2% of the Total Transaction Value. And just to see what 100% growth per quarter looks like here it is from their quarterly:


APT's Q3FY16 looks awfully similar to our last quarter figures with similar growth percentages. And NOV management have hinted what the next quarter could look like.

As mentioned by management- we're at the earnings inflection point. This is where revenue exceeds expenses and the company is stating to turn a profit.

It is also the point where the market is starting to "get it".​

I like to get in just before this event as it offers very significant upside. And if we can maintain anything close to 100% growth for a few more quarters things will get really really crazy!