I'm running this as a 'value' play as opposed to a 'growth' play now.
Statistically; achieving $3.2M in the first five months of FY18 (prior to Black Friday sales and Christmas), suggests full year FY18 revenue results should approach $7M - $8M. At a fully diluted market cap, at current prices, of $19M - we're looking at an EV/Revenue multiple of less than 3x.
For a pure-play hardware/software, 3D printing company where multiples extend from anywhere between 5x - 12x; ROBO simply looks cheap. Add in the premium the market always attaches to: 1) specs, 2) tech plays and 3) burgeoning markets (like 3D printing), and with some strong revenue announcements in the coming weeks and months, one could expect a material re-rate back to 10 - 12 cents as an initial price target.
Although, I was in contact with Robo MD some months ago and we both agreed upon the importance of continual innovation and product development to stay relevant and ahead of competition. In the recent CR, the company outlined that some of the capital raised would go to furthering partnerships of product development and R&D for next generation products. So, whilst I am initially in Robo for a 'value' play, if the company can continual to innovate and lead the 3D printing desktop market through next generation products, my strategy may transition to a 'value / growth' hybrid play.
Time will tell. But, for now, I am quite comfortable and confident that we'll see a re-rate in the next few months knowing that: 1) we have sufficient capital to push forward into 2 - 3 quarters, 2) we still have revenue outcomes from November (which include Black Friday sales) and December (which include Christmas) which we could expect to see in the December Quarterly, 3) the company has outlined Asia as a key target (so one could expect a retail distribution agreement here), 4) partnership agreements that have been hinted at, and 5) positive left of field announcements (for which BOD will be one .. I will say no more).
Merry Christmas to all, and a congrats to Ryan and the team - has been a tumultuous year for the share price, but incredibly productive year for the company. Looking forward to 2018.
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20.5¢ |
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Mkt cap ! $42.68M |
Open | High | Low | Value | Volume |
20.5¢ | 20.5¢ | 20.5¢ | $1.025K | 5K |
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No. | Vol. | Price($) |
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1 | 25000 | 20.0¢ |
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Price($) | Vol. | No. |
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21.0¢ | 4964 | 1 |
View Market Depth
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1 | 25000 | 0.200 |
2 | 80333 | 0.190 |
2 | 46221 | 0.185 |
1 | 200000 | 0.180 |
1 | 45000 | 0.175 |
Price($) | Vol. | No. |
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0.210 | 4964 | 1 |
0.215 | 15542 | 1 |
0.225 | 44238 | 1 |
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0.235 | 12765 | 1 |
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