Talking Tech – Episode 13
George and Ian discuss recent results and look at more detail at Oxford Metrics and FD Technologies.
Oxford Metrics (OMG) has faced head winds as it returns to ‘normal’ after the pandemic and supply chain issues. But it also now has the opportunity in smart manufacturing.
Historically Oxford Metrics has had strong positions in relatively small global markets, the move into smart manufacturing offers the opportunity to build a significantly bigger business in an application that is at a technological tipping point. A classic growth hardware and electronics story that needs good acquisitions and good execution.
FD Technologies (FDP) is focusing down upon its KX database business. The market looks to have picked up on the Total Addressable Market not the Serviceable Obtainable Market. Huge difference, and one that the management themselves don’t seem to have a grip on yet. On top of that its investors (or management) could well be killing the hypothetical golden goose.
If you want companies with growth valuations you have to give them the funds to drive the growth. The valuation suggests huge market opportunity, and there clearly is a significant one. However, the limited cash allocated after the post disposal distributions to drive sales suggests nothing of the sort. Tens of millions of sales and marketing will deliver exactly that in terms of revenues. Something’s got to give.
Time Stamps:
00:00 Introduction
01:15 Oxford Metrics (OMG)
07:38 FD Technologies
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