CRWY valuation depressed by unfounded AI/SaaS fears; hospital stickiness supports likelihood of future takeover bid.

Let's turn it let's turn to uh craneware and then we can kind of wrap this up. But I'd love to briefly discuss craneware because I think it's got a lot of interesting things that we've talked about throughout this process.

So I'll let you describe Craneware, but the really interesting thing to me here is Craneware is a company that got a offer at a big premium from Bane in July of 2025. You know, the stock uh they offered Bane offered $2,600 per share.

And fast forward to today and this stock has stumbled and it's trading at about $1,300 per share. I I say dollars, pounds, whatever. But uh you can give the overview. But I think that's a really interesting it's a really interesting example of you a company that had a bid, maybe stumbled.

The valuation is quite cheap on a whole, but it's got some SAS fear. So I I thought it was just an interesting one to discuss real quick.

Yeah. And it's a fascinating business because it's a a UK company based in Edinburgh, Scotland, but 95% of its revenue comes from the United States. So, you have to ask, is this really a UK company or is this an American company that just happens to be listed and and based out of a, you know, a UK um on a UK market?

It they were set up in the late '9s and they're producing software for United US hospitals. They're helping make hospitals be more efficient when it comes to delivering healthcare to their patients, but also in terms of their operation.

And I'm not an expert for that sort of software, but they're now installed in 40% of the United States hospitals, number one leader in this field by far, which goes to show they're certainly doing something right.

The company has put out some projections or calculations saying that basically they could grow by a multiple five or eight times uh their revenue over a number of years long term by you know selling more software to the same hospitals there more solutions that these hospitals need but also selling it toarmacies and by capturing more market share and they're basically aiming very ambitiously to basically say every single hospital in the United States need to have our our software and they're in 40% now.

So, it's a it's a a target that's to be at least taken serious and commended be or being ambitious.

And a year ago, Bane, as you said, offered 26 and a they didn't really offer. They they went public with we're considering an offer at 26 and a half. And the board and a variety of other key players basically screamed this is way too low.

And they're probably they were probably right at the time. The share I think went up as far as 22 or 23 pounds and the offer was turned down as fundamentally undervaluing the business and its prospects and it then fell to 12.

We're currently trading at 13 and a half. So it's basically halfed in a year and what's played into that is obviously the SAS apocalypse uh the fear that AI and you know someone will vibe code um a software that will replace what Craneware does.

But I think the market has now calmed down and has recognized that I mean if you have one particular client for software that is probably extremely resistant to changing an existing system that has been in place for years or decades and which staff has been trained on is probably US hospitals and I mean government in general and it's probably a matter of time before another bid comes in.

Again the question is what does the board do to maximize it?

No, I I think that's spot on. I mean, this one it just jumped at me as interesting because you had the bid last year, right? That is way above. But then it also plays into my my priors of you get the premium bid, you take it because I don't think anyone saw this SAS apocalypse coming.

And then the other really interesting thing is, you know, UK companies, I hate this trading update where they give you a little color but not a ton. you know, they come out in July and they say, "Hey, our two FY26 earnings are going to be kind of the same as FY25 if I'm remembering correctly."

And they say, "We had some deferrals late in the quarter that and I think they run on a July or June year." So the the FY26 is over. It ended the summer. FY27 is we're in it right now.

They say, "Hey, we had some deferrals that pushed everything back from 26 to 27." So on the one hand, you look and say, "Hey, FY27 is going to be great." But on the other hand, I mean, every SAS company that is actually getting killed by AI, they all say, "Oh, our customers are just holding off a little bit."

And you kind of start to wonder, "Hey, is this an AI apocalypse name?" Like, are they actually getting impacted? And it's just a a fascinating example across the board of the big premium offer.

This trades way cheaper than any listed US SAS company for the most part trades for. I mean, I'm sure you can find one or two examples, but they've also got the SAS apocalypse fears and it's just an interesting push and pull of all these different dynamics.

Yeah. Now, imagine if someone offered say 20 tomorrow. I think a lot of people would be tempted.

Now, a craneware that has a lot of US revenue. Like one option we didn't talk about that I just wanted to float out there. Maybe this will be to be continued. You know, like a craneware should probably look at their stock price say, "Hey, if the London market has deserted us, maybe we belong on a US listing."

Like that's one one other option for the company that you've you know published a letter to that I think exists for them that I wouldn't recommend for other ones.