<h1> My long bet on a micro-cap $PCYG.</h1>
This company reminds me of Epic Software systems – a prominent private multi-billion dollar juggernaut that empowers the US healthcare industry. The software has political firewalls against competition and is quite frankly garbage. It doesn’t matter though, the company will grow ad-infinitum.
There’s nothing impressive about the UX and design of Park City Group’s software, but it doesn’t matter, much the same way Epic did a great job of regulatory capture, I believe $PCYG has done an awesome job of regulatory capture in the food safety compliance space – the FSMA of 2011 (food safety modernization act) make up the set of regulations that $PCYG encapsulates. The company’s founder previously built Famous Amos cookies to $100M+ food brand, so he knows the game inside and out.
My price target for $PCYG is $80+/share over 5 years.
I bought a few thousand shares on margin, my avg. cost is $4.75. I’ll accumulate up until institutions begin buying. (I think this happens at ~$6.)
Tldr: PCYG/Repositrak is the DTCC of food compliance, sourcing, and traceability.
Multiple things at play:
1. The FDA will resume onsite inspections.
2. There’s 500k+ cos in the USA supply chain, 60k of them use Repositrak.com
3. The EU, LatAm, and Asia will push forward in implementing.
4. Amazon and Walmart are cartels and will enforce heavy standardization and compliance across their supply chain/sourcing.
5. 50% of all virtual audits in the USA are completed with this software.
6. The admin and clerical work are all very automated. They’ve scaled audits without significant headcount increases.
7. It is the source of truth on food sourcing and more.
8. Company converted sales revenue to subscription over the course of a year.
9. This is a profitable SAAS, margins are ~70% .
10. They’re supply chain systems agnostic.
11. If the food supplier or supply chain co modulates things, it auto-updates inside the repositrak system.
12. I think we’re in the blast radius of many more food and produce viruses, bacterias, and fungus’s and traceability and food supply chain stress will drive up the price and post $10, the eyeballs on $PCYG.
13. There will be different startups that pop up that address components of the things that $PCYG addresses – but none will fully address all the issues.
14. There is no real time updated nutrition, ingredients, and sourcing API that is accurate for restaurants and food sold at grocery stores. As the compliance based source of truth, PCYG could beat out nutrionix, and all the other companies that don’t have the data.
15. I missed out on investing in Instacart, this is my closest bet on them.
16. They raised prices several times and had negligible churn. 98% retention
$18m cash on hand
30% insider owned Consistent
Y:Y Pos Net Income Market leader
90% customers LT contract
Top notch Sr. Mgmt A+
Co-Founder | Engineering | Technology | User Experience