becuase their latest announcement reaffirm they will turn profit in FY20
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I believe shares like this defy Financial analysis apart from the revenue multiples. All a matter of faith/judgement. Is it a good product? Does management have the smarts to pull it off? How much risk are you comfortable with?
They stated in their guidance they will have ended the year in a profit.. that’s why everyone is expecting a profit, see their Covid 19 update in March 18th. They also said they will have cash of $14million and revenue was $24.5-25million.
Also you’re welcome for the spreadsheet, I hope everyone found it useful.
Hey checkmate ....your 3 scenarios - have thought of weighted expected return (applying probability Of success to each scenario)
I did a full DCF earlier this year (admittedly pre-Covid). My projection came in at rev 24.2 for 2020, with underlying cashflow of around 3.5. Had IT costs growing to 3.7. No number for profit specifically, but i guess you could say that my underlying cashflow is moreor less equivalent to EBITDA.
Will be curious to benchmark against the reality.
Disc. Hold.