i did a review of a few of the notable small cap tech hi growth stories on asx
at $82m EV BID is about $30m below the majority of its peers - 17x EV/sales which is well below BUD (70x), ICQ (32x), KNM (unknown), YOJ
implied cash of $12m on full dilution burning about $0.5-$1m/qtr if you can take the current quarter spend as indicative - though over $3m of that requires 15c options being exercised by next June
given Billy's near term rollout + US groundwork - the potential for cashflows to go sustainedly positive cant be dismissed - which is usually a big re-rate catalyst as its a key factor for some small cap funds to buy
i dont like the lack of margin. if it proves its story BUD is a superior stock
but its still cheap - its a good proven globally scalable value offering - and its potentially going to go through a sharp increase in brand recognition shortly when Billy is rolled out - which often helps sp
So overall - while im generally leary of frothy sp moves like this and bs director buying sugar spiking the market - the facts support a higher valuation from what i can glean
what i do like is that in a post cambridge analytica workld - this is globally scalable tech that generates value for and from a paying client directly - not dependant on offering a free service and onselling dataor advertising
BID Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
