Techniche is an interesting nanocap play

Mark Tobin

Coffee Microcaps

Techniche TCN:ASX is a holding company for profitable technology companies. It currently owns ERST Technology which provides software to transfer company data securely to any location in any format, Urgent Technology provides software for facilities management of large buildings, Statseeker (50% share) provides a product to allow large companies improve the efficiency of their IT networks. Market Cap $18.2mil/8.2c, circa $4mil cash, no debt, they have stated FY15 guidance is for an NPAT of $2.2mil (10% up on PCP) which gives a FY15 P/E 6.5. I caution their tax rate is highly variable so the P/E may be higher on a fully taxed basis. The upcoming dividend will be increased to a 50% payout ratio instead of the previous 25% payout ratio giving a yield of circa 6% unfranked. They have stated they want to reach $5mil NPAT by FY17 and are looking for a strategic acquisition with an M&A specialist appointed to assist in the search. A strong net cash position, potential catalyst in the form of an acquisition and a low p/e on the existing business, it looks interesting.


Mark Tobin
Analyst
Coffee Microcaps

I focus on ASX listed microcap and nanocap​ stocks which is​ anything from $10mil to $300mil market cap and everything​ in between. This truly​ is the under-researched​ part of the ASX. My hope is to bring you interesting microcap stocks and news.

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