22 | SHARES | 01 August 2019
WHY HAS THE SHARE PRICE BEEN WEAK?
DĂĚĞͲŝŶͲƌŝƚĂŝŶ Craneware (CRW:AIM) shows
ƚŚĂƚĞǀĞŶƚŚĞďĞƐƚŽĨĐŽŵƉĂŶŝĞƐƐŽŵĞƟŵĞƐ
ŐĞƚĐĂƵŐŚƚƵƉŝŶƚĞŵƉŽƌĂƌLJůŽŐũĂŵƐ͘/Ŷ:ƵŶĞƚŚĞ
ďŝůůŝŶŐĂŶĚŚĞĂůƚŚĐĂƌĞĂŶĂůLJƟĐƐƐŽŌǁĂƌĞƐƵƉƉůŝĞƌ
ƌĞǀĞĂůĞĚĂƐŚĂƌƉƐůŽǁĚŽǁŶŝŶƐĂůĞƐ͕ŵĞĂŶŝŶŐŝƚ
ǁŽƵůĚŵŝƐƐĨƵůůLJĞĂƌĞdžƉĞĐƚĂƟŽŶƐ͘
tŚĞƌĞƚŚĞŵĂƌŬĞƚŚĂĚďĞĞŶĂŶƟĐŝƉĂƟŶŐ
ƌĞǀĞŶƵĞĂŶĚĂĚũƵƐƚĞĚ /d;ĞĂƌŶŝŶŐƐďĞĨŽƌĞ
ŝŶƚĞƌĞƐƚ͕ƚĂdž͕ĚĞƉƌĞĐŝĂƟŽŶĂŶĚĂŵŽƌƟƐĂƟŽŶͿ
ŽĨΨϳε͘ρŵĂŶĚΨϮρ͘ςŵƌĞƐƉĞĐƟǀĞůLJ͕ƚŚĞ
ĐŽŵƉĂŶLJĂĐƚƵĂůůLJƌĞƉŽƌƚĞĚΨϳϭ͘ϭŵĂŶĚΨϮϯ͘Θŵ͘
Importantly, growth metrics will miss the near-
ϮϬйĞdžƉĞĐƚĞĚ͕ƉŽƐƟŶŐςйĂŶĚϭϬйŝŶƐƚĞĂĚ͘
ƚƚŚĞĐŽƌĞŽĨƚŚĞŝƐƐƵĞŝƐdƌŝƐƵƐ,ĞĂůƚŚ
/ŶƚĞůůŝŐĞŶĐĞ͕ƌĂŶĞǁĂƌĞ͛ƐƌĞĐĞŶƚůLJůĂƵŶĐŚĞĚ
ĐůŽƵĚͲďĂƐĞĚĂŶĂůLJƟĐƐƉůĂƞŽƌŵ͘ĞǀĞůŽƉĞĚŽǀĞƌ
ŵĂŶLJŵŽŶƚŚƐ͕ŝƚĐŽŵďŝŶĞƐƚŚĞďĞƐƚŽĨƚŚĞĮƌŵ͛Ɛ
core price, cost and compliance features with
ŶĞǁĮŶĂŶĐŝĂů͕ŽƉĞƌĂƟŽŶĂůĂŶĚĐůŝŶŝĐĂůĚĂƚĂƚŽŽůƐ͘
dŚŝƐŶĞǁ͕ĞǀĞŶŵŽƌĞĨĞĂƚƵƌĞͲƌŝĐŚƉůĂƞŽƌŵ
ŝƐŵŽƌĞĐŽŵƉůĞdžĂŶĚŐĞƫŶŐŝƚƐh^ŚŽƐƉŝƚĂů
customers to understand its power to slash
ĐŽƐƚƐ͕ĚƌŝǀĞŶĞǁƌĞǀĞŶƵĞƐƚƌĞĂŵƐĂŶĚƐƉĞĞĚƵƉ
ĂĚŵŝŶŝƐƚƌĂƟŽŶƚĂŬĞƐƚŚĂƚďŝƚůŽŶŐĞƌ͘
DĂŶĂŐĞŵĞŶƚŝƐĐůĞĂƌƚŚĂƚƚŚĞƌĞŝƐŶŽƚŚŝŶŐŝŶ
ǁŽƌƌŝĞƐĂďŽƵƚŵĂƌŬĞƚƐŚĂƌĞůŽƐƐĞƐŽƌŝŶƚĞŶƐŝĨLJŝŶŐ
ĐŽŵƉĞƟƟŽŶ͕ŇĂŐŐŝŶŐƵŶĐŚĂŶŐĞĚƌĞŶĞǁĂůůĞǀĞůƐ
ĂůŽŶŐƐŝĚĞ͚ĂƐŝŐŶŝĮĐĂŶƚĂŶĚŐƌŽǁŝŶŐƉŝƉĞůŝŶĞ͛͘WHAT COULD SPARK A RE-RATING?
ĞŵŽŶƐƚƌĂƟŶŐƚŚŝƐƐŝƚƵĂƟŽŶŝƐƚĞŵƉŽƌĂƌLJ
ǁŝůůŽďǀŝŽƵƐůLJďĞǀŝƚĂůŝŶŐĞƫŶŐƚŚĞƐŚĂƌĞƉƌŝĐĞ
ŐŽŝŶŐĂŐĂŝŶ͕ĂŶĚƌĂŶĞǁĂƌĞĐĞƌƚĂŝŶůLJŚĂƐĂ
ŚĂƌĚͲĞĂƌŶĞĚƌĞƉƵƚĂƟŽŶĨŽƌŽƉĞƌĂƟŽŶĂů
ĞdžĐĞůůĞŶĐĞƚŽůĞĂŶŽŶ͘
That the company dominates its niche, earns
ŽŶůLJƌĞĐƵƌƌŝŶŐƌĞǀĞŶƵĞƐŽŶĂǀĞƌĂŐĞĮǀĞͲLJĞĂƌ
ĐŽŶƚƌĂĐƚƐ͕ĂŶĚĞŶũŽLJƐĂŶĞŶƚƌĞŶĐŚĞĚĐŽŵƉĞƟƟǀĞ
ƉŽƐŝƟŽŶĂƚƚŚĞƚŽƉŽĨŝƚƐŝŶĚƵƐƚƌLJ͕ŵĂŬĞƐĂƋƵŝĐŬ
ƌĞƚƵƌŶƚŽŵŽƌĞĞdžĐŝƟŶŐŐƌŽǁƚŚǀĞƌLJůŝŬĞůLJ͘
ƌĂŶĞǁĂƌĞĂůƌĞĂĚLJƐƵƉƉůŝĞƐŝƚƐƐŽŌǁĂƌĞ
ĂŶĂůLJƟĐƐƚŽŽůƐƚŽĂůŵŽƐƚĂƚŚŝƌĚŽĨƚŚĞŚŽƐƉŝƚĂůƐ
ŝŶƚŚĞh^͘/ƚƵƐĞƐĂƵƚŽŵĂƟŽŶƚŽŚŝŐŚůŝŐŚƚ
ŽƉĞƌĂƟŽŶĂůĂŶĚĮŶĂŶĐŝĂůƌŝƐŬƐ͕ƉůƵƐŝĚĞŶƟĨLJ
ŶĞǁŝŶĐŽŵĞŽƉƉŽƌƚƵŶŝƟĞƐƚŽŚĞĂůƚŚĐĂƌĞ
ŵĂŶĂŐĞŵĞŶƚ͘dŚĞĐŽŵƉĂŶLJĞƐƟŵĂƚĞƐƚŚĂƚŝƚĐĂŶ
ŚĞůƉĂŶĂǀĞƌĂŐĞϯρϬͲďĞĚŚŽƐƉŝƚĂůƚĂƉĂŶĞdžƚƌĂ
ΨϮϮŵĂLJĞĂƌŽĨƌĞǀĞŶƵĞ͘
dŚĞĮŶĂŶĐŝĂůŚĞĂůƚŚŽĨĂůůh^ŚŽƐƉŝƚĂůƐŝƐ
already faced with challenges as the healthcare
ƐLJƐƚĞŵĂĐƌŽƐƐƚŚĞƉŽŶĚƚƌĂŶƐŝƟŽŶƐƚŽĂǀĂůƵĞͲ
ďĂƐĞĚĂƉƉƌŽĂĐŚ͘dŚĂƚƚŚĞdƌƵŵƉĂĚŵŝŶŝƐƚƌĂƟŽŶ
ĐŽŶƟŶƵĞƐƚŽŝŵƉůĞŵĞŶƚƌĞŐƵůĂƟŽŶƐŽŶƉƌŝĐŝŶŐ
transparency will only intensify the pressure,
ĂŶĚƐƵƉƉŽƌƚƌĂŶĞǁĂƌĞ͛ƐůŽŶŐͲƚĞƌŵǀĂůƵĞͲĐLJĐůĞ
ƐƚƌĂƚĞŐLJĂŶĚƉůĂĐĞŝƚĂƐĂŬĞLJƚƌƵƐƚĞĚŚŽƐƉŝƚĂůƐ
ƚĞĐŚŶŽůŽŐLJƉĂƌƚŶĞƌ͘
dŚĞůŽŶŐͲƌƵŶŽƉƉŽƌƚƵŶŝƚLJũƵƐƟĮĞƐƚŚĞϮϬϮϬ
ƉƌŝĐĞͲƚŽͲĞĂƌŶŝŶŐƐŵƵůƟƉůĞŽĨϯκͲƟŵĞƐ͕ĂŶĚǁĞ
ďĞůŝĞǀĞƌĂŶĞǁĂƌĞŝƐĂĐŽƌĞŐƌŽǁƚŚŚŽůĚŝŶŐĨŽƌ
ƚŚĞůŽŶŐͲƌƵŶ͘CRANEWARE
(CRW:AIM)
£18.75
BUY
(^500) 2016 2017 2018 2019
1500
2500
3500
CRANEWARE