Pointerra (ASX: 3DP) shares are down 36% today. The decline in 3DP shares seems to be about the quarterly activities report. Which is suggesting that delayed activity from the last quarter - already known about - is due to arrive but hasn’t quite yet. Which is not what investors were looking to see really.
The report: “During the quarter ended 30 September 2023 the Company received A$2.05 million in customer receipts, compared to the 30 June 2023 quarter figure of A$0.78 million, which contributed to a net cash outflow from operating activities of A$0.50 million for the quarter. The large US customer program delays that were experienced during FY23 are now resolving with further improvement expected in throughout FY24.”
Things are getting better, yes. But past announcements suggested that they would already be better by now. It’s that mismatch that is the problem.
Pointerra share price from Google Finance
We’ve looked before at Pointerra: “Pointerra (ASX: 3DP) (OTCPK: PTRRF) shares are up 95% this morning. 3DP shares have leapt on the back of a contract win announcement. But it's possible to think that this is ever so slightly overdone, too cooked. Excitement is indeed excitement but it's possible for share prices to rise above objective value when the market does get all interested.” And 3DP shares did indeed decline mere days later: “Pointerra shares jumped 95% last week. They're down 19% again today. We did say that we thought the rise last week was an over-reaction to what was indeed good news. And so it comes to pass that indeed that rise last week was overdone.” There’s considerable volatility in hte stock that is.
More basically about Pointerra. The base idea is to use data management to build proper models for clients. Might be mapping ore deposits, could be the complex infrastructure of an electricity grid. It’s the advances in data management that allow proper mapping of these things to take place - and once something is properly known it can be properly managed. The idea works, it’s perfectly sensible. The business problem is that of gaining enough volume of business to pay for the fixed costs of having built the system itself. Achieve that volume and things will be fine - but will they achieve that volume?
