Fonix Mobile (LON: FNX) Share Chat

Fonix mobile - LON:FNX

  • A mobile payments and messaging platform, it has 100+ clients including Bauer Media (Kiss, Magic, Planet Rock, etc), ITV and BT

  • Cloud based platform

  • Profitable, growing at a good rate: EPS 2019 3.54p , 2020 6.03p (PE 23.2), 2021 forecast 6.79p (PE 20.6), 2022 forecast 7.59p (PE 18.4)

  • A growth stock, well priced, even a 2021 forecast of a 3.64% dividend; no debt, strong cash position.

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Thinking of this. Thoughts anyone? :relieved:

*I hold this and this isn’t an investment advice

Pretty boring company but it’s good to have such ones in one’s portfolio.

Their product offerings:

  • Premium SMS billing - Eg. Voting and competitions

  • Direct Carrier Billing - Eg. Enables buying digital content and ticketing

  • Voice - Eg. TV competitors X-Factor etc.

  • Messaging - SMS, one time passwords etc.

The top three account for 86% of their profit.

Bull case

-They have shown good levels of growth in revenue and profit
-plan to pay a dividend
-are cash generative
-have no debt
-management still have a stake in the business
-their customers seem to be loyal
-Growth strategy includes expanding internationally

Bear case

-They have over 100 customers but their top 10 customers make up 82% of the total payment value. If a major customer is lost, that will potentially impact the bottom line by a material amount. However, it’s worth noting that, to date, they have never lost a major customer.

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Thank you hydrogen :blush:

May I ask where does one find such information and put this together to make an investment decision?

No worries.

It’s all there:

-company website
-Investor relations
-Companies issue trading updates from time to time so subscribe to this on sites such as Investigate

Your own research on the companies products, their USP/IP, market competition etc. should be done before any investment.

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