It appears to me that it has do a lot of picking up to justify the Market Cap - i know that it's all about future potential earnings etc. but AJX appears to be very comfortable in the 75c-90c range for the time-being until these 4cs do 'pick up':
Dec' Quarter:
- 555k receipts from customers last quarter
spending over 3 million last quarter
(loss of 2.78million)
let's say revenues pick up by 50% quarter on quarter: (assume burn rate is the same)
Starting at 555k and multiplying by 1.5 on each previous quarter:
next Qtr: 832k - spend continues at current rate a loss of about 2.5million
Qtr after: 1.25million - loss of about 2.1million
Qtr after: 1.87million - loss of about 1.5million
Qtr after: 2.8million - loss of about 200k
A further year of losses - assuming they can increase earnings by 50% quarter on quarter? What are holders expecting? 50% quarter on quarter or much less or higher?
Qtr after: cash flow positive of about 1.2million...
current market cap (unsure if fully diluted) is 225million...
I'm not ruling out ever holding AJX again as like I said in my previous post I like the idea of the company. In my opinion I believe I will see greater SP growth elsewhere for the time being.
Good luck all... I hope that the SP is just basing and getting ready for its next leg up (high 70s looks to be a strong support based on charts). This is just my own opinion and justification as to why I don't currently hold.
AJX Price at posting:
78.0¢ Sentiment: None Disclosure: Not Held
