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Excellent quarterly CYBHI public webinar last Friday where Kooth's Tina Sanders presented their virtual platform solution to all interested stakeholders in the Cali health / youth system. There was also a presentation from a Californian teenager who was part of the youth focus group that assessed potential platforms, all focused around why they chose Kooth.
A replay should appear on this page in the coming days; https://www.chhs.ca.gov/home/children-and-youth-behavioral-health-initiative/
There was a similar webinar back on April 10th where Kooth got a brief introduction, however back then they emphasised that they needed to finalise a secondary provider for the 0-12 age group. On Friday it was announced that Brightline have been awarded this contract; https://www.hellobrightline.com/
With both platform providers now announced you'd think the formal announcement is imminent...
And further to that point there has been a notable increase in US job adverts, with the total now at 29;
https://www.paycomonline.net/v4/ats/web.php/jobs?clientkey=CA518AACD06747D958404929D26FA686
Most notably they are opening a Chicago office, i.e. this advert for an IT Director;
https://www.paycomonline.net/v4/ats/web.php/jobs/ViewJobDetails?job=70557&clientkey=CA518AACD06747D958404929D26FA686
"Set up Chicago based office with required IT infrastructure."
Additional Chicago adverts for a Financial Controller & Senior IT support.
So A LOT going on behind the scenes here.
Disappointing delay, but at least they’ve kept market updated. Hopefully shortly does mean just that.
Amazing that nobody paid a single bit of attention to any of the last few items I posted, that’s AIM for you! Not often you see a premium raise like that and also very rare to see such a significant contract with a US government body. My negatives would be that we don’t know how much is usage based, what their commitment to promotional spend is & how the revenues are timed. Either way, a big step forward. Well done Kooth!
Some excellent posts from you Shearclass.
You may be surprised how many people have observed your excellent research.
Hopefully they did - it was a long wait from the initial announcement so the lack of interest does make sense!
Here's a budget breakdown of the original $4.4b CYBHI masterplan, as you can see $561m was originally flagged for the 'Behavioral Health Services and Supports Platform'.
https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Sub_3_Attachment_Children_and_Youth_Behavioral_Health_Initiative_Handout.pdf
We now know that Kooth has been allocated around 33% of this budget, with a similar amount likely going to Brightline who will be looking after the 0-12 age group. I presume that the remaining 33% of the original budget has been held is reserve to support additional platform growth in the future, or reallocated elsewhere given Cali's budget problems...
Note that Kooth announced today that they will explore opportunities to support the 0-12 age group moving forwards, this is notable because they would have very likely won the whole contract if they had been able to support this age group as the initial plan was for a single vendor solution, rather than the two vendor solution they ended up with.
Share price wise it's very difficult to call where this goes from here in the short term. It's arguably on the worst possible market for a growth stock, as liquidity is awful & many international investors simply aren't able to buy SETSqx (market maker driven) stocks. My suspicion is we'll see some drift due to an II or two taking profit & then the real rise will happen as new state wins are announced & particularly when revenues (and profit) starts rolling in.
Great to see a listed UK based small cap making global moves, it's very unusual in today's world!
Indeed, we’ll put.
I’ve taken some profits here as I bought a fair chunk sub 180p.
On a different note, Shearclass, I’d be interested in your take of Made Tech (MTec). It’s been on my radar for a while and I’ve plopped a fair whack in recently.
I’ve done a fair bit of research.
Hi Mozax, definitely a good call to take some profits - it's AIM after all. Not keen on Made Tech as an investment as gross margins are poor and public sector budgets are under pressure. Could be a good trade though based on historic movements - not one for me though. Good luck and obviously not investment advice..
Hi Shearclass, yes, thank you for your response, I appreciate your input.
I’ll be interested to see how Kooth behaves over the next few months even assuming no further US contract announcements.
Stock is under pressure here with the ‘ highly oversubscribed placing’ so perhaps momentum will continue strongly.
I’ve kept a good core holding here in the ISA for the journey.