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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (31147)	6/23/2017 7:42:07 AM
From: Goose94	Read Replies (1) \| Respond to of 203664

GoldMoney (XAU-T) Mackie Research spec buy XAU reported Q4 (Mar) F2017 results yesterday -- while revenue was softer than we expected (macro related), core cash opex was ~30% below our estimate, helping EBITDA outperformance. The stock is down ~30% since we grew cautious following a pricing cut in November; however, XAU has made considerable progress with new products and investments in recent months. We recognize XAU is a complex company with numerous moving parts and quarterly results can be volatile (macro driven), but new products /investments could aid revenue growth in the near to medium term. Despite very rapid new product introduction, XAU is managing costs well. For example, XAU expects to incur ~$3-5 mln capex in F2018 (Mar), implying total ~$2-4 mln cumulative savings over F2017 & F2018. New product initiatives could also lead to ~$1.5-2 mln opex savings in F2018. A one-time gain from Bitcoin (~$2-5 mln) could help XAU deliver positive adjusted EPS in Q1 (Jun) F2018 to be reported in August. We are rolling out F2019 estimates, while cautiously revising our F2018 estimates lower (ex. the one-time Bitcoin gain), which could prove to be conservative, especially if new initiatives gain revenue traction. While we have made no change to our rating or target, improved revenue growth visibility from multiple new products could aid XAU’s stock price.