The Catapult Group Ltd (ASX: CAT) share price is up 3% to $1.09 this morning and is now up around 66% since lows printed around 60 cents in early February 2019.
That might sound exciting until you consider the stock is actually down from a high of $4.05 in August 2016 to suggest that this is a business the market struggles to value.
The stock is up today after it announced that it has signed am "aggregated contract" with the Australian NRL to supply all its associated clubs and bodies.
"Catapult is executing a clear strategy to own the performance technology stack in elite sport, with a range oftechnology solutions that now include wearables, video analytics, and an athlete management platform," commented its chairman Adir Shiffman.
Catapult is notable as a software-as-a-service type business that trades on a low multiple of forecast sales or annual recurring revenue in particular compared to the sky high multiples of the likes of WiseTech Global Ltd (ASX: WTC) or Xero Limited (ASX: XRO).
Of course these are all totally different businesses and Catapult's management has chopped and changed over the last couple of years, while it raised capital at increasingly lower share prices. Hardly moves out of the MBA handbook on running a business and as such the market's confidence in the business is shaken.
I sold out of the shares just below $2 in August 2017 foreseeing the trouble ahead, however, I might return to the share register depending on its next quarterly update.
