LiveHire (ASX:LVH) Could Be Set to Boom?
Jason McIntosh discusses why LiveHire is an ASX small cap with loads of potential. This interview appeared on Ausbiz on 25 February, 2021.
Host: Jason, a stock you’re seeing movement in is LiveHire [ASX:LVH]. What is it that you’re thinking with this stock?
Jason: LiveHire appeared in my algorithmic scans last week. And that’s how I’m finding these little known small and mid-cap stocks, it’s all about looking for momentum. I use a series of momentum indicators to help identify share price trends. It’s really interesting when you step back and you look behind the trend, you often find some fascinating stories and LiveHire is one of them. The company has a market cap of $100M. So it’s a small stock that’s going to be off the radar for many people.
LiveHire is a cloud based online recruiting platform. It’s all about helping businesses source, engage, and hire quality people. And they’re doing some interesting things with technology. The platform uses AI-suggested candidates to speed up the hiring process.
Most of its business is in Australia and New Zealand. They’ve signed the Victorian Government, and they have companies like Baby Bunting and MyState. They’re also moving into the North American market. The company recently signed an $80 billion energy business and they also have Alberta Health — a regional healthcare provider. So they’re getting some good runs on the board.
Annualised recuring revenue for Q2 was almost $4m (up 28% YOY). The company still had cashburn of about $1.7m in Q2. But this was 52% lower YOY. There’s also no debt and $17 million in the bank. So I think this is an emerging growth stock that’s tracking in the right direction.
In sum, LiveHire is a small cap with a lot of potential. Downside looks reasonably contained at these levels. I like to see this type of asymmetric risk/reward where you can manage your risk, while opening up a lot of upside potential. If it works, I think it’s a company that can use technology to disrupt the recruiting process.
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I'm Jason McIntosh, the creator of Motion Trader. My career began in 1991 on the trading floor at Bankers Trust. Nowadays, I trade my own systems from home in Sydney.
Motion Trader is for investors who value robust analysis, data driven entry and exit signals, commentary, and education. I use engineered algorithms to identify when to buy and sell ASX stocks. No biases or guesswork, just data driven signals.