Stocks We Like – Circuit board designer rides big tech wave
Altium (ASX:ALU) designs software that is used to design circuit boards in a virtual environment. These boards are later manufactured, becoming the backbone of every electronic device. And devices of course are proliferating.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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Tony C
:
Hi Rodger
I wonder what roll if any Altium played in Volkswagen’s emissions scandal as that was not a physical device but a program in the engine software that lets the car perceive if it is being driven under test conditions.
The class actions are lining up and someone clever managed to get said program into the cars central computer somehow
Roger Montgomery
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Hi Tony,
If a printed circuit board is merely the conduit through which a “software program” has its code transmitted, then the fault lies in the software. If however the printed circuit board must be customised to accommodate the intended software program’s code, then both might be responsible. In that case, the programme used to design the printed circuit board is still merely the conduit, and it is the same software used to design printed circuit boards for devices that bring electricity and water to the needy and warmth to the displaced…
william-garbett
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Any further insights on the solidworks tie-up? Particularly to do with pricing.
Don McLennan
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Altium is a major holding for me Can you believe i sold out in Jan13 @$1.10
Bought bay last dec about $4.70
I disagree with Roger It Is Well worth buying at about $6
I have bought into WiseTech Global recently listed
it mainstay is “Cargo Wise”
Below is my data base summary
Your comments would be very much appreciated
CargoWise has a SaaS revenue modrl
Paying mthly By user & modules used plus license fee
These are recurring representing >95% of revenue
The top 10 users account for <30% of turnover
Clients can start using CargoWise in a small way adding more users (seats) &/or modules as required
EG one major customer started in 2011 with 1086 module users in 11 countries at the end of 2015 it had expanded to 9107 modules in 47 countries." My guess the DHL group"
This "network effect" will also help drive new customer additions as existing customers encourage other logistics service providers to also use the platform.
Regards Don