I guess when they have a proven revenue model, earning revenue and generating at least some EBITDA. Then I guess you can say they are less of a concept stock and more of a real company.
But even then, they will still be a speculative tech stock, given the won't have any actual cashflow.
What is your view?
I am not saying concept stock as a criticism. Like any stock where the majority/all of the NPV are cashflows well into the future, they are prone to massive moves up and down based on people's expectations/opinions about the future growth potential, which are hugely sensitive to small changes in opinions.
I am not critical of 1PG as a concept, I just think it got way ahead of itself, with a highly promotional management team etc (per other posts). And the cycles in these sort of stocks often repeat. But clearly timing these cycles are very hard and trying to stay with the downtrend when the stock can rally 50% in your face is also very hard.
1PG needs to start delivering tangible results in order to have a sustainable bounce (there are clearly some encouraging results, but clearly not enough versus market expectations). Actually meeting expectations set by a promotional management team is always much harder than just promoting a good concept and this is often when concept stocks crack.
1PG Price at posting:
$1.47 Sentiment: Sell Disclosure: Not Held
