Our New 2021 Tech Pick of the Year
Today we are finally announcing a new investment - our Technology Pick of the Year for 2021.
We have a track record of delivering sustained returns from early stage tech investments.
Our 2019 tech Pick of the Year was Whitewahk at 6.4c - up as high as 46.5c [627%]
In 2020 we invested in med-tech company MyFiziq at 11.5c - up as high as $2.20 [1,804%] (and it’s still rising)
Our Picks of the Year in other sectors include (highest point):
- Elixir Energy: Energy Pick 2019 at 3.9c - up to 29.2c [649%]
- Invictus Energy: Energy Pick 2020 at 4.9c - up to 11.5c [108%]
- Vulcan: Small cap Pick 2020 at 18c - up to $14.20 [7,789%]
- Province Resources: Small cap Pick 2021 at 2.9c - up to 14.5c [530%]
Today we announce our 2021 Tech Pick of the Year.
We have found probably the most undervalued stock we have ever seen.
After months of research, analysis, due diligence, countless meetings with management and the technology team - we have finally made one of our biggest investments ever.
As with every stock in our portfolio we are holding this one for the long term (3 to 5 years) and we will be following it every step of the way, sharing our commentary and analysis like we always do for the stocks in our portfolio.
Welcoming to our stock portfolio family - our brand new investment and our official 2021 Tech Pick of the Year:
OneView Healthcare plc (ASX:ONE) is a health tech company that provides hospital patients a “virtual care and digital control centre” at their bedside to deliver the best possible patient experience during their stay.
If you or a loved one have ever been to hospital you probably noticed how cruddy and dated the experience was.
We think the pandemic will further accelerate the trend of hospitals digitising over the next 5 years.
Think of ONE’s tech as a single touch screen at your hospital bed where you can:
- Have virtual consultations with relevant medical specialists - local and from around the world,
- Control all aspects of your room (bed, lighting, temperature),
- Order food, watch movies, get a nurses attention (think airline business class screens),
- Interact with tailored rehab, education and training videos for YOUR health situation, and;
- Monitor your health outcomes - Doctors and nurses have better info on you.
All of the different functions you want during your hospital stay in “ONEview”... get it...
Here is what OneView looks like at the patient's bedside:
And here is that the OneView interface looks like for a patient:
An analogy that might help explain why we are so excited by ONE:
You know that sinking feeling when you first get on an airplane and the plane is old and doesn’t have touch screens in the back of the seat - you know the next few hours is going to be awful.
Imagine if you suddenly have to go to hospital, you get wheeled into your room and you see that your bed doesn’t have OneView...
...or worse imagine if the hospital tries to put your sick parent, partner or child into a bed without OneView - I personally wouldn’t stand for it.
Increasingly patients and their families are refusing to accept anything less than a OneView level patient experience during their difficult time.
Again, ONE is the most undervalued company we have seen in ages.
ONE is currently used in 9,259 hospital beds around the world, including three of the top 20 hospitals in the USA.
ONE is a software platform sold as a yearly license fee per hospital bed.
ONE currently has $7.85M in Annual Recurring Revenue (ARR) - and are projecting 45% growth this year.
At 8c, ONE is capped at just $32M and that is with $8.2M in the bank after raising cash earlier this year from existing shareholders and management.
So take out cash on hand and that is an $23.8M enterprise value... with $7.85M ARR... and forecast 45% growth.
This is why we think ONE is the most undervalued company we have ever seen.
The ONE board and management seem to agree it is undervalued given they personally participated in the last cap in December raise to the tune of ~ $500k.
We dug up the change of director interest notice and found that Managing Director James Fitter personally stumped up a cool $270k into the last cap raise - big vote of support from the guy running the show.
We have had a bunch of meetings with James over the last few months and have been impressed.
The biggest shareholder of ONE with over 25% is Will Vicars - a quick peek at the change in substantial holder notice from 22nd December shows him moving up from 19.88% to 25.75%
Doing some digging on Will shows him to be certainly no slouch when it comes to high conviction investing - managing a 10Bn fund and referred to as “Sydney's Star Stock Picker”:
It seems like we are in good company as long term investors in ONE.
Global Tech Partnerships
ONE has a partnership in place with Microsoft and their healthcare offerings.
And a few weeks ago ONE had a little run when it announced a distribution agreement with global tech behemoth Samsung...
We note that the Samsung distribution was released AFTER the 45% yearly growth guidance by the company, so we can only assume that any future revenue from Samsugn aren’t factored into ONE’s growth estimates.
We know it took us a few months to announce a new investment but we take our due diligence very seriously.
We welcome ONE to the Next Investors portfolio family and look forward to providing analysis and commentary as ONE executes it’s business plan over the next few years.
We will be releasing our deep dive analysis on ONE in the coming weeks.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
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