I'm probably going to be flamed for saying this but this does look expensive. The SP will probably still keep going up but it's not based on fundamentals. That being said i haven't spent much time researching this company but this is how it looks to me.
On the takeaway.com announcement they spent a lot of time talking about the volumes of the group but didn't say much about Vietnammm.com which would only be a fraction. Some rough calcs on the most generous assumptions and it still looks expensive...
Even if they eventually won the entire group and serviced every single delivery that's 22.4m deliveries per year or $3.5m revenue per year (assuming 15 cents per transaction). Lets say there are no costs and it all flows through to profit, even at the current market cap it doesn't look cheap. That's also assuming they service 100% of the largest company in Europe. For $3.5m a year, why wouldn't they bring development of a similar product in house just like others have done successfully.
GSW Price at posting:
$1.09 Sentiment: None Disclosure: Not Held
