# CAT - Catapult Group International



## System (19 December 2014)

Catapult Group International is a leading global sports analytics company that uses proprietary technology to provide elite sporting organisations and athletes with detailed, real time data and analytics to monitor and measure athletes' fitness and skill levels; responses to specific training techniques; tactical performance; and risk of injury and safety and to assist with rehabilitation.

http://www.catapultsports.com


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## McLovin (1 September 2015)

Anyone follow these guys? I'd never heard of them until earlier this year, but they were voted the 12th most innovative company in the world. They seem to be constantly picking up contracts to NBA/NFL/EPL teams. What I like about the business model is that they are moving from being a seller of the hardware (their own) to offering data. The blow up in the AFL about changing from CAT's product to Champion Data's shows just how potentially powerful a moat these guys have/could have. All AFL teams currently use CAT's product. I was speaking to someone who works at an AFL team and he said CAT are a real bunch of c**ts to deal with. Why? They have a great product and they know we want it so they don't negotiate on price. Not a bad spot to be in.


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## Ves (1 September 2015)

McLovin said:


> Anyone follow these guys? I'd never heard of them until earlier this year, but they were voted the 12th most innovative company in the world. They seem to be constantly picking up contracts to NBA/NFL/EPL teams. What I like about the business model is that they are moving from being a seller of the hardware (their own) to offering data. The blow up in the AFL about changing from CAT's product to Champion Data's shows just how potentially powerful a moat these guys have/could have. All AFL teams currently use CAT's product. I was speaking to someone who works at an AFL team and he said CAT are a real bunch of c**ts to deal with. Why? They have a great product and they know we want it so they don't negotiate on price. Not a bad spot to be in.



Far out.   Never heard of these guys,  but their results presentation and some of their customers are very impressive.  Recurring revenue is a big bonus too. Will have a decent look at some stage,  thanks for the heads up.


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## skc (1 September 2015)

McLovin said:


> Anyone follow these guys? I'd never heard of them until earlier this year, but they were voted the 12th most innovative company in the world. They seem to be constantly picking up contracts to NBA/NFL/EPL teams. What I like about the business model is that they are moving from being a seller of the hardware (their own) to offering data. The blow up in the AFL about changing from CAT's product to Champion Data's shows just how potentially powerful a moat these guys have/could have. All AFL teams currently use CAT's product. I was speaking to someone who works at an AFL team and he said CAT are a real bunch of c**ts to deal with. Why? They have a great product and they know we want it so they don't negotiate on price. Not a bad spot to be in.




I follow the NBA quite closely and big data and sports analytics are huge in that league. Mark Cuban, billionaire owner of the Dallas Mavericks and a tech investor, is a shareholder in CAT. Mark is a pretty hands-on owner so his endorsement is probably a good guide to the quality of CAT's products and services.

I casually read about them some time ago but didn't really take a position or anything. Investing in tech stock requires a very different mindset... I wouldn't be buying Amazon or Netflix ever yet the returns have been good for anyone who took a position...


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## omac (1 September 2015)

Been following these guys (luckily) and it will be interesting to see how the change to the subscription model goes. 
 The transfer to a SaaS business model is value adding as I guess not much of a barrier exists with the units (GPS +accelerometers etc). The expertise they have is helping a team identify the useful data from the noise, different sports also have specific variables. hopefully that means their first mover advantage into a number of sports gives them some resiliency when others start with competing units (already a couple of others out there)

As far as uptake goes I think the ubiquity in the aus sports market gives a good indication of the uptake potential, sports is cutthroat, so any edge you can get, you take. FIFA also now allows wearables in matches as of june, showing that acceptance is increasing.


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## McLovin (3 September 2015)

omac said:


> Been following these guys (luckily) and it will be interesting to see how the change to the subscription model goes.
> The transfer to a SaaS business model is value adding as I guess not much of a barrier exists with the units (GPS +accelerometers etc). The expertise they have is helping a team identify the useful data from the noise, different sports also have specific variables. hopefully that means their first mover advantage into a number of sports gives them some resiliency when others start with competing units (already a couple of others out there)
> 
> As far as uptake goes I think the ubiquity in the aus sports market gives a good indication of the uptake potential, sports is cutthroat, so any edge you can get, you take. FIFA also now allows wearables in matches as of june, showing that acceptance is increasing.




I think you're on the money about CAT being able to assist in identifying the bits of data that matter for their customers. Champion Data don't even have GPS units, they'll be using them under license from a company that has no experience in providing AFL data, so it's no wonder the AFL teams are not happy about the potential change. They will also lose all their data during the change.

This article is worth a read...Professional sport is a massive business and anything that can reduce player injuries means big $$$ for teams.



> International scouting recently drew an NFL general manager to Melbourne, Australia, for a few days of rugby. During a lull in the action one evening, his eyes drifted to the sideline. The head coach was walking to the end of the bench, where a team employee sat holding a laptop computer. The two conferred for a moment before the coach returned to his post and ordered a series of player substitutions.
> 
> The next morning, the telephone rang in the Arizona offices of Catapult Sports, one of several Australian-based companies that compile live data on athletic exertion. The general manager was brimming with questions for Gary McCoy, the company's senior sports scientist.
> 
> ...




http://espn.go.com/nfl/story/_/page/hotread140326/gps-technology-nfl-game-changer


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## Ves (3 September 2015)

McLovin said:


> Champion Data don't even have GPS units, they'll be using them under license from a company that has no experience in providing AFL data, so it's no wonder the AFL teams are not happy about the potential change. They will also lose all their data during the change.




It's actually worse than that,  the Herald Sun today claimed that the GPS company that Champion Data will be working with haven't been involved at the elite level of sport since 2013, because the device they are using is inaccurate and has frame-rate issues when used live.  In other words; it's crap.

With all 18 of the AFL clubs voting for Catapult that is a very strong recommendation.  Do you really see this agreement with Champion Data being finalised?  Is there legal grounds for the clubs even breaking away from the AFL agreement?

edit: link here  http://www.news.com.au/sport/afl/co...-afls-gps-switch/story-fnelctok-1227509985113


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## omac (3 September 2015)

Yeah, definitely a good thing that the clubs don't want to change, also I believe there was a unanimous decision by a 4 person panel to keep current system.

In addition to the data analysis, there was an article (on CAT site) interviewing a NHL coach who was saying at the start of using it the data was almost overwhelming and figuring out which metrics to use and the resultant effect on players took a while. Obviously that is now known by CAT but gives a bit of an idea that it takes time to figure out each sport. you may have plenty of data by figuring out which specific metric best works for the specific sport seems less straight forward than i originally thought. 

AFL case definitely worth keeping an eye on as will give a good indication of potential moat.

Edit: the talk of the afl wanting to show more data during games it interesting too, as CAT alluded to it in prospectus, but you never know how or if these things will develop. maybe AFL know how lucrative it could be and want to keep more cash in house.


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## McLovin (9 September 2015)

Ves said:


> It's actually worse than that,  the Herald Sun today claimed that the GPS company that Champion Data will be working with haven't been involved at the elite level of sport since 2013, because the device they are using is inaccurate and has frame-rate issues when used live.  In other words; it's crap.
> 
> With all 18 of the AFL clubs voting for Catapult that is a very strong recommendation.  Do you really see this agreement with Champion Data being finalised?  Is there legal grounds for the clubs even breaking away from the AFL agreement?
> 
> edit: link here  http://www.news.com.au/sport/afl/co...-afls-gps-switch/story-fnelctok-1227509985113




I always thought the clubs owned the AFL. I'm sure they can bring plenty of pressure to bear. It is an interesting question as to whether or not they are bound by the league. The wording of the agreement says they will become the "preferred partner" which seems a bit ambiguous as to whether or not a club must use the partner's product. The kickback really shows the the popularity of CAT's product.


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## Ves (9 September 2015)

McLovin said:


> I always thought the clubs owned the AFL.



I've never been able to find anyone who has been able to explain the ownership question with any certainty.   The AFL commission runs the game.   Each club has a vote,  and 75% of them, can dismiss the AFL commissioners.   The AFL commission has the power to add or revoke licenses.  They also decide who gets what cash out of the TV rights deal and any other league revenue.  Do the members then "own" the clubs since they can elect the boards?   There's got to be a lot of assets involved here.   What happens if the whole league is wound-up tomorrow and there is cash left over?   NFI.

I assume they are all not-for-profits.   

Either way it's a really tangled web,  and much different than overseas clubs that are privately owned.



McLovin said:


> I'm sure they can bring plenty of pressure to bear. It is an interesting question as to whether or not they are bound by the league. The wording of the agreement says they will become the "preferred partner" which seems a bit ambiguous as to whether or not a club must use the partner's product. The kickback really shows the the popularity of CAT's product.



The clubs do have the power to overturn commission decisions AFAIK.  Again 75% majority required.  Good point re:  preferred partner.


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## skc (24 September 2015)

Interesting article about study of wearables being done by the NBA, and some of the potential issues that isn't immediately obvious to the lay person.

https://grantland.com/the-triangle/from-bmi-to-tmi-the-nba-is-leaning-toward-wearable-tech/


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## McLovin (24 November 2015)

Nice guidance upgrade today. Minimum 56% unit sale growth, up from 30%-40% at FY results. My theory on this was that if the US took off it would cause explosive growth. I really like that competition is staying weak. Once they reach a critical mass in the US (with their subscription model) they will become the device of choice and it will be hard for new entrants. They had a great first quarter. Second highest on quarter on record despite Q1 being the quiet quarter. That may in part be explained by the shift to northern hemisphere comps.


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## Ves (24 November 2015)

Not surprised with the updated guidance;   their announcements lately have all been positive, with a handful of new teams signing on.   I'd say they would be really close to,  if not already, profitable if you stripped out all of the expansion costs running through the P & L.

Little bit surprised however that they are raising capital.  I guess in a sense it's a good thing,  because the opportunity is there for rapid sales team expansion.  However,  I'm a bit weary that there hasn't been an SPP announcement for retail holders yet.  Is management shareholder friendly?

Not holding yet;  but keenly watching.


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## Klogg (24 November 2015)

I have been through a few presentations that have mentioned an average monthly revenue from the subscription based model of $600k. But I'm unable to find an average revenue per unit.

Seems like a basic ask, so I'm guessing I've missed it. Does anyone know if it's listed anywhere?


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## McLovin (24 November 2015)

Ves said:


> Not surprised with the updated guidance;   their announcements lately have all been positive, with a handful of new teams signing on.   I'd say they would be really close to,  if not already, profitable if you stripped out all of the expansion costs running through the P & L.
> 
> Little bit surprised however that they are raising capital.  I guess in a sense it's a good thing,  because the opportunity is there for rapid sales team expansion.  However,  I'm a bit weary that there hasn't been an SPP announcement for retail holders yet.  Is management shareholder friendly?
> 
> Not holding yet;  but keenly watching.




I think you're right about the profitability. Re the cap raising $5m raising for a ~$180m company, I'm not too concerned that they haven't made an SPP. It would be different if they were raising $20m-$30m Too early to judge how thy treat shareholders, imo.



Klogg said:


> I have been through a few presentations that have mentioned an average monthly revenue from the subscription based model of $600k. But I'm unable to find an average revenue per unit.
> 
> Seems like a basic ask, so I'm guessing I've missed it. Does anyone know if it's listed anywhere?




My chat with a few people in the industry is somewhere between $120-$160/unit/month. And I believe it's closer to the top end of that range.


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## Ves (24 November 2015)

McLovin said:


> My chat with a few people in the industry is somewhere between $120-$160/unit/month. And I believe it's closer to the top end of that range.



Pretty close to my back of the envelope calculations.

AGM presentation has a graph showing total unit sales and how they have grown over time.  Also splits it into SaaS as a proportion of total unit sales.

Whilst it's not an exact science looks like about 3,700 units are on Saas.   $600k revenue per month.   So very close to the top-end  (if not slightly exceeding it).


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## Klogg (25 November 2015)

Ves said:


> Pretty close to my back of the envelope calculations.
> 
> AGM presentation has a graph showing total unit sales and how they have grown over time.  Also splits it into SaaS as a proportion of total unit sales.
> 
> Whilst it's not an exact science looks like about 3,700 units are on Saas.   $600k revenue per month.   So very close to the top-end  (if not slightly exceeding it).




Sorry, just to confirm, I assume you mean subscription units when you say Software as a service (hence the recurring revenue)? Because the numbers I'm finding are a little different... (see below)

AGM figures from Page 29 for FY15(a) are:
Subscription units (actual): 4,447
Subscription Revenue/month = $600k
Therefore, revenue/unit/month = $134.92

Alternatively, if I use the more recent (Appendix 4C):
Total units 4,986
Subscription Revenue per month: $696k (assumes AUDUSD at 0.75)
Revenue/unit/month = $139.59


On a different note - if some consumers aren't going down the subscription route, then what are they using the unit for in particular? 
I can only assume that the analytics (Saas) are available via subscription, so how would you make use of one otherwise?


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## Klogg (25 November 2015)

McLovin said:


> Nice guidance upgrade today. Minimum 56% unit sale growth, up from 30%-40% at FY results. My theory on this was that if the US took off it would cause explosive growth. I really like that competition is staying weak. Once they reach a critical mass in the US (with their subscription model) they will become the device of choice and it will be hard for new entrants. They had a great first quarter. Second highest on quarter on record despite Q1 being the quiet quarter. That may in part be explained by the shift to northern hemisphere comps.




I had a look at mCoach Elite (Adidas' solution) and InMotioTec... I've only started to look, but they're miles apart.
The Adidas solution was due in 2012 and never really took off. InMotioTec allow exports of data to Excel and MS Access (Who still uses Access?!). Contract this to the fact that CAT have their implementation on AWS and can scale up/down as they please, and there's a fair gap to close there.

Still have a lot more work to do on the competition, but the difference is fairly obvious so far.


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## Ves (25 November 2015)

Klogg said:


> Sorry, just to confirm, I assume you mean subscription units when you say Software as a service (hence the recurring revenue)? Because the numbers I'm finding are a little different... (see below)
> 
> AGM figures from Page 29 for FY15(a) are:
> Subscription units (actual): 4,447
> ...



Thanks Klogg,    I had another quick look.   I was using the graph and revenue figure on page 34.  You're also right that it could be in USD.

But you're right the figures on page 29 are slightly different  (same for the 4C).  I guess the range that McLovin suggested is the only useful guide at the moment.  Both of our calculations seem to fit somewhere within it. 



> On a different note - if some consumers aren't going down the subscription route, then what are they using the unit for in particular?
> I can only assume that the analytics (Saas) are available via subscription, so how would you make use of one otherwise?



My understanding is that they can purchase the unit outright (much like you do with say a phone) but you would have to make another purchase if a new unit or software was released by the company.   There's probably a few other benefits of being a SaaS customer,  but would need to look it up.  But my understanding is that SaaS customers get the upgrades as part of the ongoing monthly fee.  I'd assume their website may have more details?


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## Klogg (25 November 2015)

Ves said:


> My understanding is that they can purchase the unit outright (much like you do with say a phone) but you would have to make another purchase if a new unit or software was released by the company.   There's probably a few other benefits of being a SaaS customer,  but would need to look it up.  But my understanding is that SaaS customers get the upgrades as part of the ongoing monthly fee.  I'd assume their website may have more details?




That's what I thought, but I can't find much information on their website about pricing or product usage.
Given there's an Intangible for Distributor Relationships ($382.5k as at 1 July 2015) and another for Distributor Contracts ($48k as at 1 July 2015), I assume that I have to go through a distributor, although that could be as a result of the GPSports acquisition.

I would be curious to know what information you can get from the product without any analytics/software. I can't imagine a huge data dump from the device is exactly user friendly nor useful, except to those with the means to pick it apart (in which case, it'd be more economical to just subscribe and access the software platform).

I really need to see a demonstration of the product. Might check their Youtube clips for any useful info.


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## McLovin (25 November 2015)

Klogg said:


> That's what I thought, but I can't find much information on their website about pricing or product usage.
> Given there's an Intangible for Distributor Relationships ($382.5k as at 1 July 2015) and another for Distributor Contracts ($48k as at 1 July 2015), I assume that I have to go through a distributor, although that could be as a result of the GPSports acquisition.




You buy direct from them. There are some distributor relationships that came along with GPS Sports and are in emerging markets. GPS is the more basic product which has broader appeal at the semi-pro/elite amateur level, whereas the Catapult product really means you have a team of sports scientists or tech guys who work with the product. It's not designed to be sold at the retail level, or amateur, so that's why you'll struggle to find pricing and product info. Although that makes it difficult when trying to research the investment! 



Klogg said:


> I would be curious to know what information you can get from the product without any analytics/software. I can't imagine a huge data dump from the device is exactly user friendly nor useful, except to those with the means to pick it apart (in which case, it'd be more economical to just subscribe and access the software platform).




The analytics come with the wearable. It's up to the user to opt for the SaaS option or the static version, either way there is always software to drive it. Catapult OpenField is much more advanced more customisable than GPS Spi IQ which is basically an off the shelf standard set of analytics. The real kicker is that CAT owns the data that their clients upload to the cloud which will make it very difficult for clients to leave because they'll be starting from scratch.


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## Klogg (25 November 2015)

Thanks for the product info. I have emailed them for more information, but doubt I'll get it... Will figure out a way though 



McLovin said:


> The real kicker is that CAT owns the data that their clients upload to the cloud which will make it very difficult for clients to leave because they'll be starting from scratch.




The prospectus is not very clear in this. It states:

_Under its standard commercial arrangements with clients, Catapult retains the right to utilise data obtained from its products on a de-identified basis for a range of commercial applications._

It doesn't actually say anything about who owns the data, only that Catapult can use it at any point in time, so long as the athlete/team is not identified. 
Does that then mean it must provide a data dump to the client at the end of the period?  If not, I can see how that would be extremely useful... They'd really need to stuff up to lose a subscription client.


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## McLovin (25 November 2015)

Klogg said:


> Thanks for the product info. I have emailed them for more information, but doubt I'll get it... Will figure out a way though
> 
> 
> 
> ...




Maybe a poor choice of words. They don't "own" the data, but as I understand, without the CAT software the data is meaningless, and a team's data isn't deleted once they no longer are on contract. Remember the AFL clubs earlier in the year had a big blow up about the change to Champion Data by the league because they would lose all their years worth of data.



> THE AFL has ignored a unanimous vote from all 18 clubs and ditched long-time GPS contractor Catapult Sports for a data provider it part owns.
> 
> Team bosses believe they are at risk of losing years worth of player tracking data after being told by the AFL to switch GPS systems from 2017.
> 
> ...


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## Klogg (25 November 2015)

McLovin said:


> Maybe a poor choice of words. They don't "own" the data, but as I understand, without the CAT software the data is meaningless, and a team's data isn't deleted once they no longer are on contract. Remember the AFL clubs earlier in the year had a big blow up about the change to Champion Data by the league because they would lose all their years worth of data.




I read that article, but didn't even put the two together... thanks. Good to know that the precedent has been set.
I guess competitors could bridge the gap by offering to transition data sets for clients, but that becomes a massive cost to gain clients... although that's likely not very economical unless the client is massive.

On a completely separate note, I had a look at the forecast of unit sales for FY16 and the subsequent effect on subscription and 'capital' revenues. Given a large portion drops to the bottom line, the numbers are quite sobering...
That said, I need to get a better handle on the expense side, as employee expenses are hard to judge given the sales push.


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## Klogg (26 November 2015)

Further to the data conversation - there's a further reason for customers to remain with CAT. The "Player Load" algorithm is internally developed and many training staff seem to use it as one of the inputs for their decisions. Given the algorithm is not shared, nor is the complete data set, it becomes extremely difficult for a competitor to replicate. As such, moving to a competitor means that even if the data set is handed over, "Player Load" cannot be calculated moving forward... 

In summary, the data AND the algorithms each provide a competitive advantage.


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## McLovin (26 November 2015)

Have a look at this research report. Of particular interest to me was the Q and A with existing users.



> 1) How important is wearables technology in your program?
> Across 4 sports that I spoke to (AFL, UNION, CRICKET and LEAGUE) the response was “critical”. *Nearly
> 100% of decisions concerning rehab and treatment of players are made using the data from wearables.* In
> terms of player load management, a similar figure. With regards to use for tactical purposes the response
> ...




http://www.gobarralongcapital.com/wp-content/uploads/2015/08/CATAPULT.pdf

I didn't speak to as many people in as many sports but I got similar sort of feedback on the system. Number 5 is interesting, and runs along that theme of explosive growth once it catches.


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## rryall (27 November 2015)

I bought in today. I think the growth potential of this company is massive and also like the competitive advantage it has. There has definitely been a shift over the years of sporting clubs willing to use more quantitative/science based approaches over more traditional approaches.

Shifting from purchasing outright model to a rent seeking model was a great idea imo and as other posters have mentioned if clubs want to shift to another company they lose all their historical data. You can see AFL wanted a piece of this action as longer clubs continue with CAT harder it is to leave. However, I think the AFL's/Champion Datas product will be vastly inferior so will be interesting to watch this space.

CAT have already got some of the best sporting clubs globally using this product. The real growth will occur when all the feeder competitions start using this product. For example, in AFL we have numerous feeder comps including VFL WAFL SAFL etc. A stock to watch for the future.


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## darien (4 December 2015)

anyone seen a bulletin board for 88E, I have just signed up to this forum but cant find a board for it.


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## Joe Blow (4 December 2015)

darien said:


> anyone seen a bulletin board for 88E, I have just signed up to this forum but cant find a board for it.




Hi Darien, welcome to ASF. 

The forum thread on 88E can be found here: https://www.aussiestockforums.com/forums/showthread.php?t=20288


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## craft (9 December 2015)

Thinking about CAT – rambling aloud.

I suspect control of the data is the only potential robust competitive advantage available.  Question is who will achieve control of it? Athlete, Coach, Cub, Code, Device Supplier (CAT)  

I think trading could be a good analogy for the end game here.  Trading platforms are vital to traders but how locked in are traders to a particular trading platform or do they keep moving to the latest and greatest?  How dominant and profitable has any trading platform provider been long term?  How vital is the market data? How dominant and profitable have the exchanges been long term?

Without control of the data CAT may still initially achieve large market share and initial success but the money in elite sport for the latest cutting edge will be a double edged sword and without control of the data CAT is going to need a big R&D budget to defend market share and margins I suspect.

So who’s going to control the data? I don’t suspect CAT could ever achieve ownership of the data, as the other potential owners of the data you would have to be mad to let that happen but can CAT achieve pseudo ownership by interpreting and presenting in a unique way that provides them switching barriers as if they owned the data or can they maintain cutting edge through R&D?

Notice they are in a trading halt (transaction)


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## omac (9 December 2015)

craft said:


> Thinking about CAT – rambling aloud.
> 
> Data (transaction)




I dare say the reason they started the software side of things was because they could see that the unit side of things is effectively a commodity (everything has GPS, accelerometers etc).

From memory the main reason for the AFL complaints was that the new system would be incompatible with the old data, nothing was mentioned about ownership (may be going on behind the scenes though) and I guess that the compatibility could be overcome.

The AFL partnership is one of the oldest so maybe they have rejigged the ownership/retriction of the data since then, would be interesting to know. As I understand the teams own the data and CAT (outside of the direct athlete monitoring service) have anonymised use of the data for their own purposes, which in the future they raise the idea of providing that data to fans, but currently guess they are using it to better define their algorithms. How restricted the sharing of  data is I don't know.

The adavantage they have is the pile of data headstart they have on competitors. If competitors are able to get access to the data (even from a couple of teams) they may be able to develop competitive software, but if the data is restricted then it will be hard for them to offer a competitive/refined software package from the get go. It does seem as though it takes a while to get on top of the data as Ive read a coupld of interviews with coaches who said it took a while to identify the important variables. Like most things these days its not getting the data its knowing what to do with it.

Once people have their head around the variables which contribute the most to injuries then cheaper units will be almost as effective with less sensors (eg 80% of injuries reduced just from acceleration monitoring). That would create competition in less wealthy leagues/sports but I gather the top tier will always pay for the bells and whistles especially given the relative cost compared to salaries.


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## omac (9 December 2015)

well the AFL contract is sorted. will be interesting to see how the presentation of data to fans/viewers develops, might give an indication as to what to expect overseas.


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## Ves (9 December 2015)

omac said:


> well the AFL contract is sorted. will be interesting to see how the presentation of data to fans/viewers develops, might give an indication as to what to expect overseas.



That is very interesting,  as discussed when it was announced that they first "lost" the contract,  the AFL clubs themselves clearly weren't happy.

CAT themselves clearly have a fair bit of bargaining power in the current sporting paradigm,   but as craft mentions in his post above,  it is fairly hard to work out how it all plays out and if this can be maintained in the face of new entrants. Head starts are great,  but if they only make it to say $50m-100m revenue before a competitor caught up there's still assumedly a major slice of the pie exposed that will cost a lot more in incremental investment to claim. 

I know CAT isn't a cloud offering,   but similar to a lot of the cloud SaaS products in lots of different industries,  there is the issue of "data lock-in" or "data portability" (in this case, presumably none at all).  

If there is no competition (or you have the best product by miles) clients do not seem to worry as much about having no data portability,  but when competition exists,  clients seem to get fairly picky about how much flexibility they give away with, what is from their perspective, _their_ data.

For instance, certain accounting software packages have no way of data extraction to other formats from the cloud.  Some accountants get really antsy about it at seminars etc.

It's an interesting debate.   Just google "data portability"  "data lock in", if interested.


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## KnowThePast (10 December 2015)

The following line caught my attention in today's announcement:

"The Agreement also ensures Catapult will receive an annual subscription payment plus a share of new revenue generated from any commercial applications of wearable data."

How could AFL make revenue off this data? Or, does it imply that AFL will brand and sell some of their products retail? 

I hold, my valuation is based on professional market (sports clubs) only. The potential of a retail offering opens a much bigger market. 

I also think first mover advantage applies here to some extent. If, in the future, when signing a new player, you also get their biometric stats, it would be easier if there was an industry standard format. This will make clubs reluctant to change to a competitor, unless it is significantly better.


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## Ves (10 December 2015)

KnowThePast said:


> How could AFL make revenue off this data? Or, does it imply that AFL will brand and sell some of their products retail?



TV Networks, the media in general and fans (think fantasy footy especially) love being bombarded with mountains of stats to discuss during the telecast. The AFL (and a lot of other Australian leagues) have never really opened stats up to the public outside of the basic stuff like possessions, scores and a few other basic stats.  There's still a wealth of information behind the veil (so to speak) that could be monetised like it similarly is in a lot of sports leagues overseas.


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## omac (10 December 2015)

KnowThePast said:


> The following line caught my attention in today's announcement:
> 
> 
> 
> How could AFL make revenue off this data? Or, does it imply that AFL will brand and sell some of their products retail?




I think the idea would be a subscription service for fans to get access to performance data to go with the match. How much they show who knows? but i guess the idea is to have a richer experience for fans eg live access to distance covered or some such, obviously the teams wont want everything being made available.


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## omac (6 January 2016)

of interest

http://www.sporttechie.com/2015/12/21/statsports-and-sap-announce-big-data-partnership/


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## VSntchr (8 February 2016)

Has anyone looked into dorsaVI (DVL). Looks like a potential competitor to CAT.
They have 'movement monitoring IP'. Not sure if their products are complementary to CAT or in direct competition, so a little more research needed. 
It's interesting to see that they are not only targeting elite sporting area, but also workplace health and safety.

A quick look at the accounts shows they are certainly not ahead of CAT in terms of commercial success, posting an EBIT loss of $4.6m on revenue of $1.3m.


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## omac (9 February 2016)

VSntchr said:


> Has anyone looked into dorsaVI (DVL). Looks like a potential competitor to CAT.
> They have 'movement monitoring IP'. Not sure if their products are complementary to CAT or in direct competition, so a little more research needed.
> It's interesting to see that they are not only targeting elite sporting area, but also workplace health and safety.
> 
> A quick look at the accounts shows they are certainly not ahead of CAT in terms of commercial success, posting an EBIT loss of $4.6m on revenue of $1.3m.




i remember looking at them a while ago and it looked like the focus was more physio/rehab/prehab rather than on field sports. it looks like they've increased their scope now though.

https://www.linkedin.com/pulse/50-tech-superbowl-clyde-hutchinson

This graphic is interesting and still puts dorsavi on the wellness side of things. not sure on the differences in the actual units and how easy it would be for them to spread to analytics. It looks to me like statsports is the main competitor. they have a similar number of employees, their twitter has just as similar number of followers, looks to be big in euro football (twit pics of messi et al) and a number of professional american teams, also have the deal with SAP.


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## leyy (22 February 2016)

Has anyone being following CAT?

it's being moving north very well despite volatile conditions the last two weeks.

CAT reports on Thursday 25th, so hoping for some positive news and good results.


cheers


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## VSntchr (28 April 2016)

VSntchr said:


> Has anyone looked into dorsaVI (DVL). Looks like a potential competitor to CAT.



Pretty convinced that DVL is more complementary to CAT than a competitor. CAT is definitely an "in-game" product whereas DVL looks like it is more used for rehab and "back-to-play" decisions.

The market took a liking to the 4C released today. At the half year report it seemed that the target of 8k unit sales for the full year was quite ambitious. Now with the just one quarter remaining it looks more obtainable. The company states that historically the 4Q result comprises 36% of annual sales. With 69% of the target already accounted for, this bodes well. 
Looks like CAT has customers that like to get their orders in before EOFY and ensure that they spend their allocated budgets, similar to the IT services sector.

Chart looks good for a BO play...


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## McLovin (29 April 2016)

Q2 and Q3 have now both exceeded last year's Q4, a first. Q3 has also exceeded Q2, again a first. I was looking for explosive growth and it appears to be starting. The target of 8,000, set in March, has a pretty good chance of being beaten on the current momentum, imo.


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## JJZ (16 May 2016)

Spotted this in today's Age website, thought it might of interest to some... 

JJZ


http://www.theage.com.au/technology...TE006&promote_channel=edmail&mbnr=MTEwNjkzOTg


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## leyy (8 June 2016)

Strong day with a gain of 7% with no news.

anyone still following CAT?

maybe a positive announcement is along the grapevine.

Sitting on a nice 118% gain so far, so will sit tight and stay on the uptrend.


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## VSntchr (5 July 2016)

CAT announcement out today delivering upgrade to 8354 units (prev 8000). Subscription units now 57% up from 51% PCP. This means most of revenue uplift is booked as recurring revenue base and felt from FY17 onwards rather than a one-off hit to FY16.
Quarterly unit sales look fantastic:



Also, company talking about "enhancing the offering within the ecosystem".


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## McLovin (5 July 2016)

McLovin said:


> Q2 and Q3 have now both exceeded last year's Q4, a first. Q3 has also exceeded Q2, again a first. I was looking for explosive growth and it appears to be starting. The target of 8,000, set in March, has a pretty good chance of being beaten on the current momentum, imo.




And now Q416 will beat the entire 2H15. 



			
				VSntchr said:
			
		

> Subscription units now 57% up from 51% PCP




Subscriptions keep ticking up, even as unit sales grow strongly. Nice. The ability to benchmark across a group of players in a league or even wider is a pretty core strength to the CAT product, imo.


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## leyy (13 July 2016)

I am surprised that there has been no news here.

CAT just announced a HUGE acquisition of XOS Technologies and PLAYERTEK $84M deal.

Just finished reading all the details about the deal and i am very excited! This acquisition makes perfect sense as they currently supply elites the wearable and XOS provides the video and analytical data and has huge market share in USA. The PLAYERTEK acquisition will focus on a low cost (COGS) for the amateur pro market (not elite).

The directors hold 61% of CAT so they have some stake in the business!


Summary of the deal:

The XOS Acquisition is expected to be substantially accretive to Catapult’s total revenues, recurring revenue base, and earnings before interest, taxes, depreciation and amortisation (“EBITDA”) pre-synergies, and will accelerate Catapult’s transition to positive EBITDA and free cash flow in FY17. XOS is expected to deliver US$25.0 million (A$34.3 million) in revenue, US$19.6 million (A$27.0 million) in annualised recurring revenue (“ARR”), and US$6.0 million (A$8.3 million) in EBITDA5 in the 12 months to 30 June 2016 (“FY16”).6 The acquisition price implies a transaction multiple of 2.4x FY16 revenue and 10.0x FY16 EBITDA. 


Further financial guidance announced today:

As released to the market on 5 July, Catapult upgrades its full year FY16 guidance for units ordered to 8,354 and total contract value (“TCV”) to $29.4 million. Today Catapult also advises that it expects to achieve revenue of A$18.0 to 19.0 million, annual recurring revenue (“ARR”) of A$13.0 to 14.0 million and EBITDA of A$(3.8) to (4.8) million4 for FY16.


Discloser, happy long-term holder. Will be topping up on the cap raising and will be sending more money with the hope they accept it


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## skc (13 July 2016)

leyy said:


> Summary of the deal:
> 
> The XOS Acquisition is expected to be substantially accretive to Catapult’s total revenues, recurring revenue base, and earnings before interest, taxes, depreciation and amortisation (“EBITDA”) pre-synergies, and will accelerate Catapult’s transition to positive EBITDA and free cash flow in FY17. XOS is expected to deliver US$25.0 million (A$34.3 million) in revenue, US$19.6 million (A$27.0 million) in annualised recurring revenue (“ARR”), and US$6.0 million (A$8.3 million) in EBITDA5 in the 12 months to 30 June 2016 (“FY16”).6 The acquisition price implies a transaction multiple of 2.4x FY16 revenue and 10.0x FY16 EBITDA.
> 
> ...




I am surprised how cheap the acquisition is... looking at some of the metrics based on the transaction price and CAT's last market cap of $194m.

Market cap / revenue    XOS = 2.4x, CAT = 10.5x
Market cap / ARR          XOS = 3.0x, CAT = 14.4x
Market cap / EBITDA     XOS = 10.0x, CAT = N/A

Perhaps XOS is just a big data IT firm (where there are many alternatives) while CAT's products have more unique IP?

I can definitely see the potential synergies there with sales and also products development... but I would have thought XOS wouldn't sell itself that cheaply.



leyy said:


> Discloser, happy long-term holder. Will be topping up on the cap raising and will be sending more money with the hope they accept it




I only bought CAT about 2 months ago and it's already up 40%. Let's see how the into placement go.


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## McLovin (13 July 2016)

skc said:


> I am surprised how cheap the acquisition is... looking at some of the metrics based on the transaction price and CAT's last market cap of $194m.
> 
> Market cap / revenue    XOS = 2.4x, CAT = 10.5x
> Market cap / ARR          XOS = 3.0x, CAT = 14.4x
> Market cap / EBITDA     XOS = 10.0x, CAT = N/A




It's even cheaper. CAT's MC is ~$450m.



skc said:


> Perhaps XOS is just a big data IT firm (where there are many alternatives) while CAT's products have more unique IP?




XOS is a much more mature business than CAT, from what I gather. I wouldn't expect the enlarged CAT to trade on the same revenue multiple as CAT currently does. That being said, I think it's a very shrewd investment. They've already been working with XOS since early last year (with the Jacksonville Jaguars combing the two techs) so they probably already have some idea of where they can cross sell either product.XOS also has licensing agreements with media outlets in the US which CAT has been talking up as the way forward. Video with wearable puts them well ahead of anyone else, especially given how good CAT's existing wearables stuff is.


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## skc (14 July 2016)

McLovin said:


> It's even cheaper. CAT's MC is ~$450m.




Oops... what a rookie mistake. :bonk::bonk::bonk:



McLovin said:


> XOS is a much more mature business than CAT, from what I gather. I wouldn't expect the enlarged CAT to trade on the same revenue multiple as CAT currently does. That being said, I think it's a very shrewd investment. They've already been working with XOS since early last year (with the Jacksonville Jaguars combing the two techs) so they probably already have some idea of where they can cross sell either product.XOS also has licensing agreements with media outlets in the US which CAT has been talking up as the way forward. Video with wearable puts them well ahead of anyone else, especially given how good CAT's existing wearables stuff is.




Yes. I read the presentation in detail last night and the fit is a pretty good story. 

Also had a quick look at PlayerTek's website. Prosumer is going to be a great market. Although it is probably going have a lot more competition given the alternatives out there. I think most fitness bands have GPS and are good enough for sports like running and cycling. But sports like football and soccer requiring more accurate tracking will still need the better hardware.

Perhaps the analytics and pro-comparison would be unique selling points available to CAT. 

It feels like they should charge less upfront and more for the subscription... but I am guessing that it's early days yet in their revenue model.

P.S. Bell Potter's been pushing this cat hard recently and now we know why...


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## VSntchr (15 July 2016)

Unbelievable strength today.
Coming online with a theoretical ex price of $3.61 and it opens at $4.00. 
Gets sold down with vigour and looks it might be heading to the $3.00 raising price...but then the true lack of supply becomes evident and someone wants more shares and its back at the daily high of $4.09.

Wonder if more supply will come on over the next few days, there will be alot of CR stock to wash through...


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## McLovin (17 July 2016)

skc said:


> Also had a quick look at PlayerTek's website. Prosumer is going to be a great market. Although it is probably going have a lot more competition given the alternatives out there. I think most fitness bands have GPS and are good enough for sports like running and cycling. But sports like football and soccer requiring more accurate tracking will still need the better hardware.
> 
> Perhaps the analytics and pro-comparison would be unique selling points available to CAT.




I had a look at the PlayerTek stuff, it's pretty good product. I do wonder how much of it is gimmick v something players can actually use. I mean does a weekend warrior really need to know how they compare to a pro? Still it's an interesting concept and a good starting point to  move down the line from the pro offerings.





skc said:


> P.S. Bell Potter's been pushing this cat hard recently and now we know why...




I thought it was interesting Goldman's had any interest in doing this cap raise. Seems way too small for them. Maybe a NASDAQ listing is being lined up in the next couple of years. I wonder if CAT decided they wanted exposure to overseas instos and the BP Roladex doesn't measure up as well as GS.


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## leyy (25 July 2016)

Considering the the new shares through the institutional holders were trading on the market today. There was obvious profit takers as it opened circa 10% down.

CAT introduced  21,912,014 additional shares to the market.

CAT regained all the losses in late trading and this is very bullish as it shows there is lots of accumulation and demand for CAT.


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## JTLP (17 February 2017)

This ones been on a bit of a hiding, despite reaffirming their financials. 

Any thoughts?


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## Tightwad (17 February 2017)

morgans were still positive on it recently, i haven't really warmed to it but haven't looked too in-depth.


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## galumay (17 February 2017)

JTLP said:


> Any thoughts?




I will have to look back thru my notes, I know I decided against investing in CAT, but I cant remember what stopped me.


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## JTLP (7 September 2017)

The hiding to nothing still hasn't stopped! At a 52 week low of $1.415 as of the close. I can't put my finger on it [emoji53]


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## jbocker (19 October 2018)

Well I have bought in today. 
They are saying in their report today that their cashflow is into positive territory! 
They are also making headway into Football (soccer) market, which they say is huge. Don't see why you want to measure blokes running around on one spot kicking a ball backwards & sideways, but who knows what the detail and analytics are being provided.
A promise of more delivery of information to those of us who have (ahem) 'retired from the game', ie off the bench and now on the lounge. Actually the dear wife wants me to wear one, she thinks I can improve my workrate with chores in the yard and cutting the lawn. I am gonna put one on my broker and hopefully can zap him from my remote when a stock takes a hit.
Have a good weekend folks.


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## jbocker (24 October 2018)

Good News in their quarterly report sees a nice jump (~14%) at opening. Looks like they are getting some agreements with some big clubs, Real Madrid being one of them.
https://www.asx.com.au/asxpdf/20181024/pdf/43zk3h7sqp8nd4.pdf


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## notting (24 October 2018)

The big CAT was a good buy last night! As in Caterpiller!! I haven't looked at this thing.


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## barney (24 October 2018)

jbocker said:


> Good News in their quarterly report sees a nice jump (~14%) at opening. Looks like they are getting some agreements with some big clubs, Real Madrid being one of them.
> https://www.asx.com.au/asxpdf/20181024/pdf/43zk3h7sqp8nd4.pdf




Just had a quick squiz jb …… They have over $33 million in the coffers yes??? … 

Market Cap around $190 million ??

And their Cashflow is improving ??

No wonder the bleeding stopped … nice gap up off the lows too …. probably a few more celebrations to come for long suffering holders over the next few months you'd think


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## jbocker (30 October 2018)

Their presentation 25 Oct mentions 2019 guidance which implies a growth between 37 and 63%. I also notice almost all of their photo content is soccer related. I guess they are counting on big inroads into that sport.
Was chatting with an old mate  who works in an AFL club (the best in the league  ) and he tells me the sports scientists use this information extensively in training and on game days. I don't see this sort of technology diminishing or phasing out. I note the media also get some data during games, not sure how. I will ask next time I catch up for a beer.


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## jbocker (21 November 2018)

From their announcement today..
*Catapult’s new soccer and American football partnerships*
_Catapult Group International Limited (ASX:CAT, ‘Catapult’ or the ‘Group’) today announced two exciting partnerships in world football and a video coaching solutions deal with a new American Football league. The three partnerships further showcase Catapult’s global leadership in sports science innovation and technology. ..._

https://www.asx.com.au/asxpdf/20181121/pdf/440hmhkqpxd746.pdf


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## bigdog (7 February 2019)

Share Price Crash Today currently down 18%







 Motley reported

Investors have been hitting the sell button in a panic this morning after Catapult announced the sudden resignation of its chief executive officer Joe Powell.

According to the release, the Catapult board and Mr Powell agreed that now is the right time for a new CEO to lead the company through its next phase of growth.

Mr Powell has provided the company with 6 months’ notice and will remain with it to the extent required by the board. A global executive search process for a new CEO has now commenced. Co-founder, executive director, and former CEO Shaun Holthouse has agreed to increase his executive commitment until a new CEO is in place.

Catapult’s executive chairman, Dr. Adir Shiffman, said: “As the global leader in the sports technology industry, the next phase of Catapult’s growth requires a CEO with strong strategic capabilities, senior expertise in a global enterprise, and a commitment to creating shareholder value.”


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## jbocker (8 February 2019)

Finished 22.93% down for the day.
I liked their story and while I was hesitant at the time, I sold just prior to Xmas at 80c. While that was still a loss at that time I am now glad I did sell. I thank the things I am learning on `Dump it Here` thread.


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## barney (8 February 2019)

jbocker said:


> Finished 22.93% down for the day.
> I liked their story and while I was hesitant at the time, *I sold just prior to Xmas at 80c*. While that was still a loss at that time I am now glad I did sell. I thank the things I am learning on `Dump it Here` thread.




Your intuition was good Bock ….. 

I'm not great with Balance sheets etc but their numbers seem better than the SP is telling us?

Not sure the average punter is getting all the info 

The biggest Volume on yesterdays dump came in around the 62-64 cent area which is where its being traded today so someone sees value at this level ….. interesting.


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## Miner (12 February 2019)

Australian Super has disposed of their holding at 64 cents.
Bell Potter or shaw (sorry do not have the report handy) this morning has recommended it as a speculative buy.
Since two big blows, the prices are slowly recovering.
DNH


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## Clansman (3 May 2019)

Miner said:


> Australian Super has disposed of their holding at 64 cents.
> Bell Potter or shaw (sorry do not have the report handy) this morning has recommended it as a speculative buy.
> Since two big blows, the prices are slowly recovering.
> DNH





Recovering well and looking set to test the 12 month high.


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## galumay (3 May 2019)

I think the big test is whether management can start to execute in shareholder's interest. There have been some terrible missteps in the business that have destroyed value, I still see potential but they need to get some runs on the board before I would consider it investible.


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## Boggo (16 May 2019)

Game on today !!!

(click to expand)


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## Clansman (22 August 2019)

Well done to all who hold this. Doing well without a CEO or CFO. Looking set to blow through the 12 month high on strong volume.


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## Clansman (6 September 2019)

It appears the T/O could be in play with this one over the coming months. After blowing through a 12 month high at $1.55,  it again pulled back to the lower end of it's trading range in the high teens. Over the past week there has been an inordinate amount of volume in the low $1.20's. It's been an excellent range trade over the past 6 months and looks set to continue it's impressive turnaround although getting taken out is probably the more obvious outcome. A good place to be in any event.


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## Clansman (19 September 2019)

Away it goes again pushing through yet another 12 month high.


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## Clansman (11 November 2019)

Another 12 month high today closing at $1.66.  Australian Super must be rue the day they sold out of this at 64 cents. The CEO announcement has proven to be popular.


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## Clansman (24 November 2019)

The consensus must be that this one has delivered. Terrific turn around story.


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## Clansman (14 January 2020)

Next target for this is just short of $3 after the textbook retrace to $1.55 from the 12 month high at $1.21. Higher highs and higher lows. Beautiful.


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## barney (14 January 2020)

Clansman said:


> from the 12 month high at *$1.21*.




$2.21 I assume

Any concerns over the depth/steepness of the December retrace Clan?  I notice a lot of Stocks are following a similar pattern at the moment.


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## Clansman (14 January 2020)

barney said:


> $2.21 I assume
> 
> Any concerns over the depth/steepness of the December retrace Clan?  I notice a lot of Stocks are following a similar pattern at the moment.




Correction $2.21. No concerns with the demand still there. Interested to know the stocks you speak of.


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## frugal.rock (15 January 2020)

Clansman said:


> Interested to know the stocks you speak of.



Here here.
I mean, I agree, and post them here!
These ARE the droids we are looking for..
F.Rock


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## barney (15 January 2020)

Clansman said:


> Correction $2.21. No concerns with the demand still there. Interested to know the stocks you speak of.






frugal.rock said:


> I agree, and post them here!




Trust me, you don't want to know these Stocks I speak of

I am perhaps being overly cautious with the CAT chart as it did not suffer from any ultra high Volume at the recent highs and is therefore likely to continue on its merry way as Clansman has predicted.

Often with these "cats ear" spike/retracements, the initial upside momentum is lost. 

I repeat, the CAT chart looks better positioned already … but nothing wrong with having some kitty litter handy in case of accidents

Charts below of another "un named" Stock I used to own. 

Lost a bit on it before I set the kitty free! …


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## barney (15 January 2020)

ps …. If you have a look on the BC8 thread … @finicky has posted a chart which also resembles a developing "cats ear" … hopefully it behaves


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## barney (16 January 2020)

barney said:


> I am perhaps being overly cautious with the CAT chart as it *did not suffer from any ultra high Volume at the recent highs and is therefore likely to continue on its merry way as Clansman has predicted*.





Clansman said:


> Correction $2.21. No concerns with the demand still there.




Hats off to @Clansman ...... looking good!

Chart mumblings for my own future reference


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## Trav. (30 May 2020)

June Stock Tipping Competition Entry

Ok I have not looked at CAT before but scan picked it up via a pull back signal on the close yesterday. 

It looks to have had a nice run already up 184% since low in March, and sector appears to be getting stronger so maybe we will another 50% gain to reach the high $2.24 in January 2020.


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## Dona Ferentes (23 June 2021)

Catapult Group International Limited (ASX:CAT) is pleased to announce the strategic acquisition of leading sports software video solutions provider, *SBG Sports Software Limited*, and plans for increased investment in technology, data science, and scale capacity, to accelerate the Company’s growth strategy.

Central to this accelerated growth strategy are significant opportunities to drive additional customer value, and to expand Annualized Contract Revenue by 10x. 

The SBG acquisition and increased investment to scale growth will be funded through a $35M underwritten institutional placement (representing approximately 12% of the Company’s existing issued capital)  and a $5M non-underwritten *share purchase plan*. In addition to the Placement, two Directors of Catapult will subscribe for $1.35M of shares, on the same terms as participants under the Placement, subject to shareholder approval. All shares will be issued at a price of* A$1.90*.


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