Reflecting on AB1 and its future and it's so frustrating how undervalued this co is on the ASX. There's no direct peers but if you look at other tech listings on the ASX that are from $50M+ market cap, you'll find:
- most lose money - annual revenues of a few $m at max - yet are priced at 10 - 40 P/S
whereas AB1:
- makes money - projected annual revenue of $33m CY19E (my estimation) - priced at 2.2 P/S (using my estimation) or 6.1 (using iClick contract ALONE, not including core gaming business)
This also doesn't account Zeroth, Sandbox, OliveX and many other opportunities that will take a few years to realize.
Yat (Chairman) keeps buying every chance he can. Many other companies are buying at raises at premium prices.
I think if this quarter is good, get ready for an almighty re-rate. I used to think maybe around 20 cents is fair value but when you look at the comps on ASX, this can go much much higher.
Ticker
Revenue from last quarter
Operating Profit
Market Cap
Price to Annualized Sales in CY19E
1
PVS
$3.85 million
-$4.6 million
$162 million
10.5x
2
LVH
$0.94 million
-$2.7 million
$146 million
38.9x
3
ISX
$3.9 million
-$2.6 million
$156 million
10x
4
LVT
$2.4 million
-$11 million
$209 million
9.1x
5
BUD
$0.8 million
-$3.5 million
$114 million
35.8x
6
AB1
$4.5 million
Positive cash-flow
$68 million
2.2x (My estimation) or 6.1x (iClick revenue only)
AB1 Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
