Bewhere Holdings Inc V.BEW

Some points from recent presentation on SmallCap Discoveries

[hrgoyal]

Some points from recent presentation by CEO
 

1. Sold 76K devices in 9 months of 2024
2. Gross Margin on devices in Q3 12%
3. Gross Margin on Recurring revenue in Q3 12%. (MIOT: 89%, Armored Vehicle 18%)
4. Gross Margin on services in Q3 4%
5. Expect 35% YoY topline revenue growth. (doubling every 2 years)
6. Leasing of devices introduced. Will ramp up as per market preference.
7. Total device sold so far 380K
8. Looking to use cash for some small tuck-in type acquisitions.
9. Not looking for buyout in near future.
10. Monitoring share prices on daily basis and NCIB may be activated as needed.  

[Bonk4491]

Recuring revenu MIOT is their main and only recuring growing right now. It come in at 89% gross margin. I think people can stop freaking out looking at one quarter only with margin. It will pay off sooner than later. Lots of interesting timbits in there. They have cash and looking to expand with small acquisition that make sense,flip to lease to get recuring kick in sooner for some clients

[hrgoyal]

I don't think it is freaking out. 90c is/was a price for perfection. Once the investor will know that 24Q4 is going to be as good or better than 24Q3, investor will look forward.  BeWhere is now a mature company and showing quarterly profit for last 2 years and price will be decided based on EPS, Growth Rate & Free cash flow. EPS which will be around 1.5c in full 2024 has to ramp

[Bonk4491]

I have to disagree here bew is not a mature compagnie it's basically a slide in their presentation. They call it early majority. Iot also still have a lot of upside. 90c was good but it will go much higher with time. They sold 35k unit this quarter only after being around 20k for a while. Demand is only ramping up. This is not reflect well in Q3 earning since they were delivered in Q4. Time

[hrgoyal]

Yes demand is ramping up and BeWhere is selling more devices. No doubt here. A part of the problem is proper communication. Owen agreed that news release should have better explanation for lower GM. Owen didn't mention in interview that freight was a reason for lower GM. I was also confused how can freight can be a factor. Device weigh about a pound and air freight will not add more than $1 to

[Bonk4491]

They have to do a better job reporting and explaining. Stock price price is suffering because of this right now and no report till aprl. Glad they will make earning calls going forward. Still see bargain right there. Owen said it it at PE forward with no grotwh base on Q3 at 25 right now. Add 35% growth and stock still cheap.