Attended Kate's presentation today and here are my thoughts for what they are worth:
- Kate was an extremely professional and knowledgeable speaker; it's great to see this kind of experience in a company with a MC that is ALC speaking confidently about successes to date and the opportunity.
- The market is genuine, tangible and here right now; it will only grow.
- ALC is not trying to be everything to everyone; they are solving simple problems for partners and then expanding (see the slide with the whiteboard > dashboard view). They are also happy to partner with 3rd parties to enable new capabilities.
- ALC has 100+ employees; the acq of MKM was a very good play by management, as they have the on the ground practical experience to implement the solution.
- Miya Precision has substantial upside as a product in isolation - it would be good to learn more about the practical feedback from the Palmerston site, I think this would be good investor info for ALC to focus on to better understand the leverage they have once implemented.
- ALC is genuinely only getting started; the opportunity to leverage the AI capability is only the tip of the iceberg, the patient data at scale could make ALC a highly regarded research platform for major medical / pharma players.
- ALC's solutions are sticky; this is not a fly by night engagement with hospitals, but will drive significant recurring revenue growth.
- A large chunk of the top 20 have a vested interest for the longer term (MKM vendors, key management)
I believe ALC has some exciting years ahead, but I also believe it will likely get taken out sooner (say 12-24 months) rather than later by a bigger player as the story gets out and potential realised.
Price wise, this could easily trade on 10x revenue, and at this stage likely 0.14-0.16c range (crude calculation on current MC and $14M revenue realised this year ex pipeline). Being a realist however, I do think there will be a CR at some point given $1.5M in the kitty and a favourable price rise.
ALC Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
