TTB - Total Brain

[xinyu09]

Hi everyone, I am new and a current shareholder of BRC.ax. Would anyone be interested to share their opinion about this share please?

My opinion is at P/E of 5, it's so cheap and based on aspect model, the underline intrinsic vaule is about $1.25. However, it's like IT company with a low real asset backing, could there be hidden risk here?

Thanks in advance.

 

[System]

On December 3rd, 2018, Brain Resource Limited (BRC) changed its name and ASX code to Total Brain Limited (TTB).

 

[greggles]

Has anyone been following Total Brain? Love the name of this one.

They just raised $14million through the issue of 175 million shares at a price of 4.6c. As a result they now have 952,883,255 shares on issue.

This is how the company chooses to describe what it does:

Total Brain Limited (TTB) is a San Francisco and Sydney based company that has developed and sells Total Brain, a mental health and fitness platform powered by neurotechnology, with over 700,000 registered users. Its SaaS platform helps people scientifically measure and optimize their brain capacities while managing the risk of common mental conditions. Benefits for employers and payers across the United States include productivity improvement and healthcare cost reduction.

Last quarterly showed an increase in revenue when compared to the previous corresponding period, but operating losses have continued.

So how do they plan on transitioning from an unprofitable business to a profitable one? Here's what the company said in its last quarterly about its future outlook.

It all sounds very exciting, but losing $2.4 million each quarter doesn't give me a warm and fuzzy feeling about TTB. So how did they manage to raise $14 million? This is the question I inevitably had to ask myself. So I had a look about what is being said about TTB elsewhere and this is what I discovered:

• Shareholders who are true believers in the company and the potential global market for its product.
• Huge potential in corporate productivity and addiction treatment markets.
  
• Recent partnerships with IBM and Vault Intelligence (VLT) will substantially increase reach and revenue.
• Platinum Asset Management and Regal Funds Management jumping on board the $14 million placement is a huge vote of confidence from respected fund managers.
• Total Brain offering is superior to all competitors in the market .
  
• Significant news flow expected in the short term.

Of interest for those looking for something a little forward thinking and out-of-the-ordinary perhaps? Maybe this is an idea whose time has finally come?

 

[barney]

Has anyone been following Total Brain?

They just raised $14million through the issue of 175 million shares at a price of 4.6c. As a result they now have 952,883,255 shares on issue.

Only noticed this today ….. If we'd all bought when you mentioned it on Monday we'd be having next week off!

Capital raised at 0.046 as you say Greg ….. trading today at 0.094 currently …. That makes me a little nervous, but well done to anyone who got on!

 

[Smithy1967]

A few things for you to research, or to help guide you:
1) look at the quality of the register.....ex head of Och Ziff Asia, current Mellon Capital board member, Regal and Platinum + 8 other instos and family offices coming onto the register from the most recent capital raise. All Directors participated in the CR.....
2) look at management.....from the CEO down it is a quality group of people....
3) read the arrangement with IBM and what they are doing with US Military veterans
4) Mental health is a theme of our times....possibly second to climate change
5) largest standardised neurocognitive database in the world, Dr Evian Gordon the founder was the head of the Sydney Brain Institute....and he's a cardiologist too...
6) expect to see further announcements around their penetration into the B2C sector, working with companies directly on supply of tools to better the mental health of employees

In short, they know where the bodies are buried, they have a CEO who is finally commercialising the product and reducing the time to revenue, and the execution of that capital raise was stunning. It's not having a shortage of targets, it's now about having the ability to execute the strategy.

I haven't mentioned the Vault Intelligence deal, the locked in revenues with Boeing and others...this will get to $1bn within the next 2-3 years if they execute the strategy. The CR will get them to supportable revenues within 12 months.

Here is Louis talking about TTB....

Good luck....and good mental health. I'm in it for the product as I have done the assessments and they are really thoughtful and confronting. If this company can deliver products for people with mental health deficiencies (82% of the population at any one time) then to me its an easy decision to invest.

https://www.google.com/search?q=lou...XaILcAHTT9AhsQ_AUoBHoECAsQBg&biw=1440&bih=714

 

[barney]

A few things for you to research, or to help guide you:

Cheers Smithy … and good luck with the trade

 

[Smithy1967]

Thanks mate.
Full disclosure, not affiliated with TTB, i'm just luck enough to have found the company, done the research (even the online tests) and i just think the story + mgmt + product are compelling. I'd love to see them bought out by someone to allow the product to be in the hands of 100's on millions of people who, like me, don't operate at 100% all the time...but hey, who does?
Good luck.

 

[barney]

i just think the story + mgmt + product are compelling.

The biggest hurdle I see in the short term is their cash burn. Cash receipts collected for the September Quarter were higher, but they are still negative $800,000 per month in outgoings which will take some turning around.

Personally, I'd be treating the recent large cap raise/SP spike with appropriate caution, but that doesn't mean it can't keep going

As for operating at 100% … I think the last time I managed that was over 40 years ago

 

[barney]

Fair dinkum ….

They must really like the newly appointed Secretary …

Or they really really really disliked the old one

Up another 35% …… I hope it doesn't turn into pass the parcel.

 

[Smithy1967]

Seems to be outsourced Company Secretarial, this bloke seems more that qualified. Though I did have to laugh at the fact that the stock rips (AFR article helped + the words from Phil King from Regal) same day as they replace the bloke. Not Harvey's career highlight day...
11.5c.....not sure of today's VWAP but it'll put a floor on the stock bigtime for a while....Time to execute now, investors is expecting much.

 

[barney]

Not Harvey's career highlight day...
...Time to execute now, investors is expecting much.

Yeah its not exactly flattering when you resign and the Company's share price goes through the roof

Anyway … trading wise … Lots of Volume and closing on the days highs. Can mean a few things.

1) Traders are involved so it will likely go higher (short term)
2) Likely gap up on tomorrow's opening
3) If 2) happens, personally I would not be buying the gap, but I am a sook
4) If 2) doesn't eventuate … same sooky response as 3) Lol

I still have major concerns over the recent large Cap raise at well under half the current SP

This is now in "big boy" Trading territory …. I've been burned too many times so happy to watch and learn.

If the SP continues to rise with no additional news to support it (recent financials aren't great), questions will be asked … and a fall (likely quick) will ensue …..

Hope I'm wrong for Smithy and other holders, but gravity will eventually come into effect

 

[Smithy1967]

Thanks mate,

The raise was coming, the ASX please explain just expedited it. I suspect that people didn't fully appreciate the benefit of a strong, tightly held register, and not only that the calibre of the register....Zoltan Varga is not fool, trust me on that from personal experience.. Conviction is closing your Asia fund, and buying one position, TTB, for your personal account. I don't know Dave Daglio, but again, a professional investment manager with 50mn shares.....does that not get people interesrted. David Torrible, as I understand it, ran Research Sales or Distribution at Goldman Sachs in Asia. He would have been all over this capital raise as he's been involved in a few in that role I suspect. Hence the excellent execution and high insto participation. i.e., get the register right, others will follow.

AGM is Friday next week....I'd expect them to be open about updated revenue expectations for 2020 onward, though the IBM deal commercial arrangements might not be shared (why would they??). Important that they get on their own two feet and limit the cash burn out of revenues over the next few quarters.

Total was silly, tomorrow, prob the same, though I'm happy to hold this until someone like Amazon or others decide that they need to own this outright, at which point the TTB Board will have a decision to make....go it alone, or squeeze out every last $$$ they can and get it into the hands of a company who can put the product to hundred of millions of people....which would be the best outcome for all.

I'd love to see the register as it stands right now.....tight as a fish's #$%hole I'd suspect.

 

[barney]

I'm happy to hold this until someone like Amazon or others decide that they need to own this outright, at which point the TTB Board will have a decision to make....

Good on you Smithy. I admire your research and hope the Stock does exactly as you wish (so far it is behaving brilliantly)

Always happy to see other punters having a win

 

[kenny]

I've been quite slow to buy into TTB having started monitoring them after noticing Regal & Platinum take a position at the recent placement at 4.6c. Of course the current ASIC/AFP investigation into Phil King's ASX: RF1 is concerning.

After the teleconference call this morning, it's apparent management are upbeat on the growth from the IBM partnership especially around the engagement by veterans on their platform. If at least one of the upcoming pilots convert into ongoing contracts then we'll see recurring revenue growth in FY2020.

Very speculative SaaS play at this stage. AGM on Friday will be interesting to attend.

 

[barney]

I've been quite slow to buy into TTB

Probably not a bad thing Kenny.

There was a fair bit of Selling into the recent run up. Still reasonable Volume being traded but the SP has the drifts in the short term.

How it behaves if it gets back to 0.083 could tell a better story.

 

[barney]

How it behaves if it gets back to 0.083 could tell a better story.

Behaving as expected. If it forms a tight range around the 0.08 cent area from here with reasonable/then reducing volume, it will look a bit more stable.

 

[kenny]

Noticed in the HY report that the partnership with IBM has led to signed agreements but still awaiting the full report and launch.
https://www.ibm.com/industries/federal/grit-mobile-tool-veterans

 

[Dona Ferentes]

The $1.00 reached in Nov 2019 didn't last long and then Covid nudged it over the precipice; 30c by late March, bounced around under 40c and now at 29c a share.

R&D Tax Incentive $1M in Jan, further Govt funding US$1.05M in April, and a Loan agreements $1.8M in June has kept it going, but now a Trading Halt for Capital Raising .

Look out for the Announcement from Total Brain Re Placement

 

[frugal.rock]

Look out for the Announcement from Total Brain Re Placement

? Total hilarity...slipped through to the keeper?!

Interesting change of tone on this today.

 

[frugal.rock]

That's a lot of down for a little bit of up today..?
Market seems to have liked today's ann, or was just totally exhausted?