Originally Posted by
bulyak
Interesting comeback. OK, if you factor in 273 million shares on issue post placement then it looks more like a share price of about 2.89 once they reach the ACMR of 100 million. So I'm happy with the $2.70 share price you refer to. I stand by the 7.9-8 multiplier. Their quarterly report says that ACMR is 62 million, but take your point that a component of that is variable based fees. Hence the reason for the Gross Margin at 55%, (should be above 70% for a B to C - typical SaaS. The multiplier gets penalised for this. What I like is the 70% plus growth for this type of turnover. with 95% plus customer retention. As long as they can keep that kind of growth occurring then I feel the multiplier of 8 applies. Yes the cash burn is a concern but acceptable as long as the growth continues. But the minute that growth stops they better have the cash reserves in place to support their strategy. This is a big market they have found, easily over 1 billion. The Yanks like to donate, especially when it comes to the higher powers.