Australian (ASX) Stock Market Forum

I think its probably just volatility in a micro cap, CXZ often jumps around in 10% range, i reality it hasnt gone anywhere in 2 years, the single client risk continues to hold it back IMO, I am happy to continue to hold a small position because its a pretty asymmetric bet, if they cant grow the business with new clients, its still a profitable little company that has little downside in the medium term, (especially since resigning GM.), on the other hand if they can get new clients or scale up CXZTRAC then it should show growth in profitability and ROIIC thereby earning a rerate.
 
Latest quarterly from the 21st of Jan.

Still plodding along with $100k net profit in the quarter and tracking to $3.5 - $3.7m in revenue for the year. they also have $4.6m in AUD in cash against a $10m MC.

The pilot programs look like a good move away from sole reliance on GM for their model.

Connexion signed Commercial Pilot Agreements (“Pilots”) with US automotive software companies Tollaid LLC (“Tollaid”) and Digital Dealership USA Inc (“Carsfast

FYI don't hold anymore, sold in October

1644223879998.png
 
A very tough half year 2022 for CXZ, the chip shortage and general supply chain issues have had a huge impact on the business. Regardless it still turned a small profit and FCF Was actually quite strong but I havent checked to see what is driving that (inventory, receivables, or payables?) A tiny position for me so not too concerning and as supply chains normalise they should see a quick return to increased activity.

Screen Shot 2022-03-02 at 8.24.46 am.png
 
True, Dona Ferentes. Its been a tough year for CXZ, the only consolation is the resilience of being a debt free, profitable business generating FCF. I like the style of management, CEO Aaryn Nania is a good communicator and seems to be very focussed and driven in his role. Only a tiny position for me, but happy to hold thru the current issues and see what the future holds.
 
Will put this here; not sure CXZ will be a direct beneficiary as it's more the car companies morphing.

"Cars have been closed products. They tend to stay more or less the same for the whole life cycle, and that will change. They will become intelligent, they will learn from the driver, so your car after three years will be better than when you buy it, because it knows you.”​
“Today software represents 10 per cent of the value of the car. In 2030 it will be 40%.”​
Luca de Meo, CEO, Groupe Renault
 
A trip to the basement.
And up 40%. From 1c to 1.4c

Market Update

Connexion Telematics Ltd refers to the Renewed Agreement referenced in the ASX announcement dated 20 June 2021 titled “Connexion Telematics OnTRAC Renewal with General Motors”.

Connexion is pleased to advise that its cornerstone OEM customer has agreed to extend the supply of the Connexion Platform (originally branded CXZTRAC) to all its Courtesy Transportation Program participating dealerships as part of an “All in One” version of the OnTRAC platform. The
extension takes effect from January 2023, and is expected to be formalised in due course via an Extended Agreement. The Company expects a subsequent uplift in monthly subscription revenue of approximately US$250k.
 
Good news, and a significant reaction from the market! Given the tiny size of my position, 40% doesn't move the needle but still nice to see.
 
On November 21st, 2023, Connexion Telematics Limited changed its name to Connexion Mobility Limited.
 
H1 2024 was a good one for CXZ.

Screenshot 2024-02-09 at 8.37.30 am.png



Earnings about half that after adjusting for Government grants, but even so the Cash Flow Statement really shows the simple power of this business in its present state,



Screenshot 2024-02-09 at 8.40.32 am.png



No PP&E expences, no finance expences, no debt, no leases.


But worth noting the $1.3m OCF, is really $1.0m after deducting Government grants, then deduct $180k for SBC, so $800k then deduct some component of the R&D expences which are certainly Capex, given that its $1.3m this year its a not insignificant amount even if you consider it having a life of 5 years and then work out the NPV of this years share of that. So for 'back of the envelope" lets call it another $300k and we end up with $500k of FCF. Still not too shabby!

The only thing I am not a big fan of is the CXZ specific bull**** Earnings Bingo, "DMEPS", "NPBT" and "RGS".
Plus Aaryn mentioned "Flywheel effect" which is an automatic 🚩
 
Top