The risks are real

Finweek English Edition - - Marketplace Simon Says -

4Sight Hold­ings is list­ing on the AltX board of the JSE in late Oc­to­ber, rais­ing up to R300m via a pri­vate place­ment. The com­pany's state­ment is full of buzz­words, de­scrib­ing its only busi­ness, re­cently ac­quired, as be­ing “a core fo­cus on pro­vid­ing de­ci­sion support tech­nol­ogy so­lu­tions that en­able, in­ter alia, in­tel­li­gent pric­ing and de­ci­sions across var­i­ous in­dus­tries”. In short, the com­pany will mine big data for cus­tomers and will ac­quire other sim­i­lar busi­nesses op­er­at­ing in this space. The prospec­tus has great-look­ing growth pro­jec­tions (2018 rev­enue more than dou­ble 2017 rev­enue), but I re­main very scep­ti­cal. Cer­tainly the risks here are very real. The field of big data is glob­ally com­pet­i­tive and I would want some strong sets of re­sults pub­lished be­fore I would get in­volved here. In­vestors de­cid­ing to jump in must ex­pect an in­cred­i­bly bumpy ride that may be very prof­itable, but that could also go very wrong.

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