Is our potential already factored in our MC of $75 million?
It all comes down to the size of the potential at this stage. Some of our MC of $75 million is due to the number of shares on hand ( over 2 billion).
For example if I listed a dud IT company on the ASX with 2 billion shares @ 2c, the initial MC is $40 million dollars. With no potential the share price would eventually drop from 2c to 0c. But because the numerical value of the shares is close to zero, the very nature of the low share price would attract small investors that would keep the stock alive longer than it probably deserves to be.
SYT is a million light years above being a dud. However I do believe that little of the potential is factored into our current share price.
There are many indictors saying that SYT does have potential. The quality of our management and contracts with Tata and Verizon for example. These indicators are the reason we are here at this very early stage.
Potential will be realized when we see the start of hockey stick revenue. By then it will be too late to get shares under 10c. After that it will be a comfortable ride watching the share price grow as the revenue grows.
What is the likely time frame for reported hockey stick revenue? My guess is another 2 to 3 quarters which is a very short time for an investor who wants a multi bagger of a lifetime.
SYT Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held