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Consensus community valuation
$2.29
Average Intrinsic Value
146%
Undervalued by
Active Member Straws
#Basics
Added 2 months ago

Did a report on this back in feb never noted basic notes, because well, Covid. 

30- 50 billion dollar TAM, they rely on there 10,000 freelancer translators, this however is porbably good now as people look for work, main aim for growth is to buy out other smaller companies. This was the only guidnace prior to corona they gave, they strictly gave no finanical guidance. With the current situaion as people close borders could see this comapny go two ways, people might need more translation as there is less face to face, relying less on a few individualls. But it could also cause less as new buinsess propsal and other reasons to go to foreign countires will be dimisished, showing less translation needed. Charged per word (is expenisve), bigger cusomters is per hour.  New Zeland based. 

Basic Finance info

No new finicial information since covid, so working off the fact that most recent half year (2019 1) was at 13.5 million up from 11.9 million (2018 h1) (up 800K), but adim expense were up 1.1 million and distrbition expense 800k. These asssumily have little association with buying out smaller companies. Showing that comparititivly not that great for revenue. Just running the bare neccsities of the company they were down 1 million. Most recnet quarter was the first quarter they were positve in  the past 4 quarters. YoY the operating expenses are compatible with gains so that more gains would actually be beneficial. They need to fund soon as they only have 13.9 million left, with 13 million in loss, in 2019 first half. 680% asset to liabilites is good. Low debt

Board

Ceo is the founder and his wife is the cheif operating officer, i think this is good as the orignal creators still see a postive outlook for this company, they own a lot of shares too from my interpretation of the chart they gave. Which didnt striclty say who owned what, but it seemed ok, with 16 employeess owning over 100K, 9 over 150 k and 3 over 200K. The chairman was the Xero chairman up until 2012, so i think thats a plus. Another director has great expernice with ebay, uber and other online service systems. Board put the business not in a main city, in regards to the employees, so they can work in place with lower house prices and in a less busy area. Also to hire local people. Could be an excuse to give lower wages, but seems legit. 

Competitors

They have many competitors, Gengo similar sized american owned , with big cutomers, 20 million in revenue. Rev is another big one with 120k customers. Verblazeit smaller, lots of customers. Lexigo is an aussie based one, small, but good reviews. We localise is big oppisiton, 272 million revenue. Theres like wordpoint of the same size . The online reviews of STG are very mixed, although some websites have some really bad ones. with lots of reviews saying there slow and inaccurate, with limiting language and bit out of date aswell.

to be fair this company seems to be cheap at 0.70 with lots of potnetial, thats the problem its realying on the potential, although theres no gauratnees this seems to be too much risk in current climate. If this was the price two months ago, i porbaly would have been swayed

 

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