Another buy recommendation from The Bull., page-18

Hello Luna

Emerging "tech" type stocks such as XRO, APT, A2M to name a few are not rated on traditional metrics (PE ratio etc) in their early years but rather on a revenue multiple where there is a strong revenue growth trajectory and little competition.

PET is in my view another such stock and now has a market capitalisation roughly 20 times annual revenues taking income from Lake Yunnan into account. When PET's first factory is in full production (15k tonnes pa) revenues from Phoslock sales alone will be about $50m then there's revenues from consultancy and engineering works to be added.

As a case in point when XRO's sales were around $500m the MC was about $7.5 billion and it was then just turning cash flow positive. On the evidence to date PET is fairly valued but if it can win the work on those eight other lakes in Yunan Province and complete work on the second factory do not be surprised to see the share price several multiples above where it is now. Then there's the World Bank projects, Europe and so on.

In my view there is potential for massive share price growth ahead.