Michael Liu on why he thinks Cogstate $COGZF is a great business wrapped in a special situation play

Michael Liu, Analyst at Intelligent Fanatics Capital Management, discusses Cogstate (ASX: CGS) / (OTCQX: COGZF). Cogstate provides computerized cognitive tests for Alzheimer's clinical trials. Michael came on to discuss his thesis on Cogstate and how a failed takeover attempt could create an interesting special situation. For more information about Michael Liu and Intelligent Fanatics Capital Management, please visit: https://if.capital/ You can Follow Michael Liu on Twitter @michael20171 : https://twitter.com/michael2017l Chapters: [0:00] Introduction + Episode sponsor: Stream by Alphasense [1:51] What is Cogstate and why are they interesting? [6:21] Cogstate Fundamentals [8:01] Why doesn't large pharma, like Biogen, develop these cognitive tests on their own? [10:38] Cogstate value proposition [12:04] Does Cogstate control all the data from the clinical trials? [12:47] Alternative to Cogstate's computerized cognitive tests (pen and paper tests), and understanding competitive landscape [16:08] Current Cogstate market share for their tests vs. pen and paper tests [18:12] Growth in Alzheimer's research and diversifying revenues outside of big Phase II and Phase III clinical trials for Alzheimer's drugs [21:30] Additional R&D post-approval of Alzheimer's drugs (what this means for Cogstate) [25:55] Valuation [29:53] Bookings and revenue recognition (and how that relates to thinking about valuation) [33:44] What caused to the stock to plummet earlier this year February 2023 [35:43] Gaming out why the buyout didn't happen [36:44] Management background [39:16] Recent insider buys and understanding why this happened today vs months ago [43:07] Who the buyers could be for Cogstate [46:18] Closing thoughts on Cogstate - recent buyouts in the Australian space Today's episode is sponsored by: Stream by Alphasense Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you. But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/