Historically i have been a bull on Big Tin Can but Pinch of Salt provides some good insight in weighing up the reasons to buy or sell.

Some further considerations,

The coming year will wash out the strength of the Brainshark acquisition in terms of numbers and being able to assess the ability to be profitable in FY23 or FY24.

Assuming if cash receipts in Q3 of 34.3m are annualised this would equate to revenue 137million over the coming 12months . This would put BTH on a price to sales of 2.5x. This would also equate to revenue which would be 25% up on FY 22.

Historically BTH have traded on a 6x + price to sales .

Current price is I feel a reflection fo current times whereby tolerances to anything unprofitable and average growth are not rewarded.

David Keane has been buying shares 27k @ 0.67c on the 9th March 2022 and 55k @ 0.92c on the 1st Feb 2022. Overall there is low insider ownership which presents as a red flag for me.

David CEO and Co founder owns 0.2% or 1.1million shares .

Disc Holder in RL and SM

Evening Straws there is much to like abuot this acquisition and i am keen to hear if there is anything i am missing

BTH was trading 9.3x sales multiple prior to this announcement at 53.1mill in ARR. Market cap 496mill.

FY22 Combines ARR is estimated to come in at 119mill (growth rate estimated to be a combined 20%+in FY22) 

On a sales mutilple of 

9.3 = 1,106 bill

7= 833mill

5 = 595mill

Other positive considerations :

Synergies estimated to be 3mill+ in FY22

Upsell opportunites across both businesses

SQN Investor uptake of another 35mill shares at $1.05 to 75million shares or 13.9% of total stock providing clear signal on the attractiveness of the deal 

Further US focus and ability to compete further enhanced

BTH maintain 72mill in cash 

Risk / Downside:

Dilution of stock with additional 129mill more shares on issue.

Execution 

Summary 

I feel there is low downside risk and solid upside opportunity in short , medium and long term.

BTH - Voice vibes acquisition.

Interested in the value that voicevibes may provide for BTH in assisting sales teams to be quick, efficient in relation to  providing proactive feedback to improve sales pitch. 

I was impressed when listening to the customers and BTH team on their Product and Technlogy Webinar on the 13th April this year.

Not sure if others tuned in but keen on obtaining others views as for many this is a very effective manner in which to learn .