First of all - you might want to learn how to read a P&L statement... You clearly haven't looked before you've typed (Whoops!)... FY2015 was in fact almost cash-flow neutral and NOT larger than the year prior... ($318k loss in FY2015).
There are going to be large expenses at random points in time during this while they develop certain aspects of their product suite and these expenses will increase again at some point when they enter North America, this will also reflect their sales figures being sporadic early days, but likely to become more and more consistent over time, theoretically once things snow-ball and provided their product works and customers carry on using it, the recurring income figure should only increase YOY.
You do understand this is a spec stock and not a dividend paying blue-chip right? To me, forward-looking/future expansion in earnings and market size is what the market will factor in here, like with many others that multi-bag and have absolutely zero income... Hence the term speculative stock.
Most large wins I have had in the market have been in stocks that have re-rated based on potential income. For example RAP was a 15 bagger (still $0 income to date...), SMN was a 100 bagger prior to making any significant revenue and certainly prior to making any profit... EMC has only just begun it's re-rate, EMC has sales figures significantly lower than what ALC does and is not turning profit, HZR has only just begun it's re-rate... HZR does not earn any income (I expect those last two I mentioned to both exceed ~$1 SP this year)... The list goes on.
A few things I look for are: Companies that have a large target market, good management, good product (tailwinds like Govt. mandates are a bonus, which ALC is timed well with in the US - Obamacare/HITECH act etc.), likely to have multiple catalysts/event-driven re-rates over time, debt free, unlikely to need to raise capital unless it is for significant growth opportunity.... I consider Alcidion to tick all of what I just listed, and more.
Cheers.
ALC Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
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