Gentrack Group Limited

ASX:GTK

Gentrack Group Limited

ASX:GTK
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$11.41 (-1.3%)
Last close price
#164
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1
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14
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Reports (2) My Report Forum Investors
Forum Topics GTK GTK GTK V HSN

Pinned straw:
Arizona
Added 7 months ago

FWIW, I was listening to this podcast yesterday from Intelligent investor:

https://www.intelligentinvestor.com.au/investment-news/stock-take-red-flags-and-stock-valuations/153564

I don't own either stock. I have been watching HSN a long time.

Intelligent Investor have apparently done very well with GTK and will continue to hold the stock. But they see better buying in HSN at the moment.

"So, the way I think of it is that Gentrack is trying to get to Hansen's size and yet, you're already paying Hansen's price for it. You're getting three times more for the same share price basically with Hansen, which unless you feel that Hansen is somehow doomed, which I don't think it is, because Gentrack's going to completely overtake the industry and every possible utility will be switching to it instead of Hansen, then there might be a case for favouring Gentrack over it. In fact, there certainly would be a case for favouring Gentrack. That doesn't seem to be the case, Hansen's still growing, Hansen still has an excellent set of staff, it's got a much more diversified revenue base and so is also much more stable because of the change in business or the different business model, so it's not as if it's - yeah, I think it's a bit of an ugly duckling at the moment because Gentrack's suddenly got all the glamour around it, but in terms of valuation, Hansen wins hands down in my opinion. "
edgescape
Added 7 months ago

@Arizona I've watched HSN for more than a year. It was even in my comp portfolio for about a few weeks before I sold it.

Definitely looks like good value. My issue is that simply they paid too much for Powercloud and there are now issues starting to creep in as it gets integrated.

  1. There looks like issues scaling the product and onboarding customers
  2. As a result, Powercloud isn't expected to contribute return until FY25
  3. HSN is pulling resources and throwing more money on top of the money paid for Powercloud to fix the above issues
  4. And there is the risk that Powercloud customers waiting to be onboarded could lose patience.


I guess all of the above has put some downgrades on HSN. Just goes to show integrating software and tech businesses can be very complicated. My gut feel is to wait and see what happens after 6 months.

Another minor concern is the CEO has been running the show for like more than two decades and I'm not sure how much longer he can stay. So there is a question on leadership too.

I have a few broker reports on both. Will post in another straw.

BTW: I haven't topped up yet on GTK. Still waiting patiently but I think this might be a good replacement for my ALU.

12
edgescape
Added 6 months ago

Sorry correction, I got mixed up with Hansen as CEO when it was actually Graeme Taylor although he has been leading the company for about a decade too.

Another minor concern is the CEO has been running the show for like more than two decades and I'm not sure how much longer he can stay. So there is a question on leadership too

When the Chairman instead of the CEO takes the results call there is bound to be some confusion anyway.

It's always good to hear a bear case for Gentrack. Keep 'em coming!

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