"If you read my earlier posts I said $650k was a big fail for $135m market cap company."
Yes, and you were spot on, in my opinion. I think it was the first time since July (when I started following the CRO threads) that I'd seen anyone talk about normal valuation methods. Too many people here seem to think CRO is 'cheap' at 4c or 5c - the reality is that by any normal valuation metric, it's actually very expensive. If we take the past four quarter's revenue, that's $1,639,000. At the prior close of $0.046 that's a market cap of $135M - in other words, trading at 82x revenue. If we assume that the next two quarters do grow at the target rate of +40% Q-on-Q, then annual revenue would be $3,077,400. Again, at the prior close price of $0.046 that's still trading at 44x revenues - and this company is currently burning $3M in cash a quarter, nowhere close to profitability. For those touting percentages, why are they only talking about revenue percentages? What about staff/admin/corporate expenses? Average expenses per quarter are up 198% from FY21 to FY22 - now that's growth.
As I've said before, ignore the 'story' (and the rampers) and read the 4C numbers carefully. They tell you everything you need to know. Consider that Adrian's paycheck for the quarter was $168,067 vs revenue of $615,000 - or 27%. And at the AGM the directors were asking for a bunch of options to be issued. I am intrigued to see what the results of the meeting are... seems like holders are finally catching on.
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