How do you see Management executing here? I mean they‘ve been searching for an acquisition for quite some time. They could sit on the cash for another 3-4 years.
With the software sector being down, there could be a possibility that we don’t see a multiple expansion to the old figures we’re used to see.
I think capital allocation has improved since 2024 and should continue.
Management has said they are very limited in finding an acquisition that fits with their existing business so it may take some time.
I agree there is the potential for software to have a permanent re-rating, but I think NamSys is fundamentally higher quality than most public SaaS. Growing 15% and generates plenty of cash which I think deserves a double digit multiple.
Maybe this software panic will finally let them make an acquisition at a price they want.
But even if it doesn't, the cash pile will continue to grow and I think eventually they will return to shareholders if an acquisition cannot be made.
That's a very interesting analysis on NamSys that was not on my radar at all. When you see these small cap businesses forming fundamental strength it can be one of the best investments to make. Curious to see if the financials continue to reveal a pattern that underlines this strength.
How do you see Management executing here? I mean they‘ve been searching for an acquisition for quite some time. They could sit on the cash for another 3-4 years.
With the software sector being down, there could be a possibility that we don’t see a multiple expansion to the old figures we’re used to see.
I think capital allocation has improved since 2024 and should continue.
Management has said they are very limited in finding an acquisition that fits with their existing business so it may take some time.
I agree there is the potential for software to have a permanent re-rating, but I think NamSys is fundamentally higher quality than most public SaaS. Growing 15% and generates plenty of cash which I think deserves a double digit multiple.
Maybe this software panic will finally let them make an acquisition at a price they want.
But even if it doesn't, the cash pile will continue to grow and I think eventually they will return to shareholders if an acquisition cannot be made.
That's a very interesting analysis on NamSys that was not on my radar at all. When you see these small cap businesses forming fundamental strength it can be one of the best investments to make. Curious to see if the financials continue to reveal a pattern that underlines this strength.
Thanks. If growth continues should work out well.
That’s exactly the question - so how resilient is the company if a downturn occurs - But overall it is worth giving it a shot
I think they are somewhat recession-resistant. Banks always need to count and transport cash.
As long as there are illegal drugs, there will be a demand for cash.