I am impressed by holders that have had the nerve to hold this stock into extremely lofty valuations on such meagre cash flow and ACV figures. Congratulations to all.
ACV of $8.9 million AUD
Cash in hand of $4.5 million
Market cap of $503 million
Negative cashflow from operating activities over the past 6 months
56x EV/ACV
40% quarterly growth equates to a 284% CAGR
Even if the CAGR is maintained (which will be harder with scale), investors today are paying for multiple years of growth upfront.
This is one of the biggest bubbles on the ASX that I have ever seen; I give it a 95% chance of retracing at least 50% from current levels at some point in the next 12 months. A $500 million MC off the back of <$10 million ACV -- I've never seen anything quite like it. Even with the growth rate, it just doesn't add up.
“The trading favorites of 1928 were high-priced, untried, and unseasoned stocks that made one wonder whether the public did not think that the higher the price the better the stock.”Edwin Lefevre
“History shows us, over and over, that bull markets can go well beyond rational valuation levels as long as the outlook for future earnings is positive.”Peter Bernstein
In the end, of course, all violations of the fundamental laws of economic and financial common sense are paid for; but every bull thinks he will unload before the break.
Good luck and I hope all of you reading this will end up with a realised profit on 3DP.
T.E.P.
3DP Price at posting:
75.0¢ Sentiment: Sell Disclosure: Not Held
