When we look at small/microcaps with potential, we often want to look out for Aussie companies that have made their mark globally- world beaters. Like Altium, Wisetech, Appen, A2Milk, and more recently Promedicus (PME).
But one stock that was a darling before never got much love from the market after a poorer acquisition decision, I am talking about Catapult (CAT). At $128m market cap, with customers the likes of Real Madrid, and major NBA teams, you cannot say that Catapult's elite sports wearables have no market traction. They are a global recognised brand in its space and yet the market rates Buddy Platform and Yojee better in relative terms when you compare their state of progress (of lack thereof).
I believe the issue with CAT is that it has been able to translate into tangible profits just yet and that does not stand well with more sophisticated investors including instos. But retail investors in BUD and YOJ are unlikely to give as much weighting to those metrics. In the end however, it is most likely that CAT would be rated back up from its undervaluation. LVT/BUD/YOJ would eventually face the same issue as CAT in progressing their sp higher if they continue to have negative earnings
