It is not entirely unusual for a microcap tech stock to be...

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    It is not entirely unusual for a microcap tech stock to be completely overlooked and unloved for a considerable period of time- take M7T as example. I use to remember HC forum members have nothing good to say about the company- that's typical reaction when the stock has been underperforming. But unlike other microcaps, M7T in 2017 already had a decent software app / technology for health management and widely deployed across numerous hospitals in the USA - its bugbear had been its inability to be cashflow positive or turn into the black. I remember riding this one , albeit very short period during the tech boom of Q3 2017 to the infamous Feb18 meltdown- from circa 20c to 30c, but today it is 82.5c , more than triple the value. So what changed? My belief is that we recently had an IPO lister Alcidion (ALC) with similar technology that was trading at a substantial premium to M7T and eventually the instos got wind of M7T.

    The above shows that 2 things- if we have a trading timeframe (typically months to a year), the above can be frustrating, more so because M7T already had been generating decent growth and interest then but received no traction because the stock wasn't known to many and like I said, retailers are followers not leaders. Secondly, the value of its IP came good in the end because if its technology doesnt stack up, it wouldnt have been able to win new contracts and get to a point now where it is coming close to be profitable finally, although it took a period longer than many impatient investors were expecting. That said, this is not saying that every microcap techs should be given considerable room time to deliver - one has to make an assessment of the company''s IP and determine the value it can bring to its audience vis-a-vis marketplace competition. The key question to ask is has the company's product or solution been endorsed and deployed in a major client environment and what different value proposition does its products or solutions bring to the marketplace that remains unmatched by other competitors in similar space.
 
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