Vection Technologies (ASX:VR1): Fairdinkum or just a fad?
Nick Sundich, March 9, 2023
Vection Technologies (ASX:VR1) is one of the few ASX stocks involved in Virtual Reality (VR).
As a result, its share price has been volatile over the years as investors wonder whether it is fairdinkum or just a fad. A trading update today might suggest it is the former, even if it is only at an early stage.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Who is Vection Technologies?
Vection Technologies has a suite of VR products aimed at businesses. Its most popular, Mindesk, helps businesses render designs in realtime VR.
The company listed on the ASX in April 2019 through a reverse takeover of ServTech, which had listed in 2016.
Its share price has been volatile ever since, going through spikes driven by individual client wins and even non-binding MoUs (Memorandums of Understanding).
The company’s finest moment was in 4Q20 when it won the Italian government as a client, to develop a remote maintenance solution for trains.
Vection Technologies (ASX:VR1) share price chart, log scale (Source: TradingView)
An intriguing week
Vection Technologies told shareholders this morning that its Total Contract Value (TCV) was ~$14m, 40% higher than it announced barely a month ago.
It also told shareholders the next two quarters would deliver strong uplift head of $24-$26m in revenue guidance. The company credited sales growth, both from new and existing customers.
It has announced several new contracts of late, most recently a ~$1m order from a top ten defence contractor – announced last Thursday.
Ultimately, we do think Vection Technologies is a fairdinkum business, although it is still not cash flow positive.
So even though it had 10 quarters of cash left as of its last quarterly cash flow report (issued in late December), longer-term investors might not be confident to gamble on this one (yet).
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
No credit card needed and the trial expires automatically.
Blog Categories
Recent Posts
5 ASX Health stocks to add to your porfolio
5 ASX Health Stocks Stuart Roberts from Stocks Down Under discussed the potential promise of biotech, sharing his perspectives about…
BHP wants to buy Anglo American, but what would the potential $60bn deal mean?
In what was meant to be a quiet week on the markets, investors learned yesterday that BHP wants to buy…
Here are 5 ASX resources juniors with projects in unusual locations
ASX resources juniors live and die by many things, but project location is one of them. The majority have projects…