Ever since they listed on the ASX, the PPH price has gone seriously backwards. No doubt affected by the general malaise with the tech/cloud/mobile app market but in this case the stellar (and continuing) growth in revenues suggests that the market has been undiscerning. To reach cashflow positive by the end of 2017
looks achievable in view of management's ability to grow this company. They started in NZ and chose a niche market with church donations; moved to Australia and then to USA where they have expanded in leaps and bounds. To expand into the USA like this without tripping up shows real ability. I like their focused strategy with a niche market and their attention to providing services that fit into that market. Church activity in USA is massive both in terms of the number of attendees and in giving.
I think that this company will beat Xero to an annual net profit announcement but of course, time will tell.
There is also the possibility that further on, as a successful player in a substantial niche market, they themselves will become a takeover target (and which investor is going to complain about that).
I have an averaged purchase price of A$1.46 with trades since late October and looking to increase if it goes back into the $1.30 area.
PPH Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
