Ann: Cettire Upgrades FY21 Prospectus forecasts, page-52

tass92...firstly when a fast growing stock is in its early stages of growth ..it's important to look at the structure of the company ..in this case the company does not tie up cash flow in stock..but redirects stock..it has No storage Costs ..No Land and building costs for storage...it has a very low labour costs per unit of sales..it's just a cash generating machine...The only real question is what are the costs of driving the platform ,improving the platform and expanding the sales....Tass as an accountant you will realise that cash flow to a company is like blood to all living species ...now the quality of cash flow is also important ie how much does it cost to produce more cash is there an economy of scale or a diseconomy of scale or almost a fixed cost ...it appears as revenue rises costs will remain more or less fixed so it will cost the same to deliver rising sales apart from improving the platform and funds used in marketing through advertising ...and advertising costs are always high in the early stages ...until awareness has increase the demand and sets in motion accelerating demand...it appears this process is now strongly in progress ..in early stages of a low cost structure ..revenue growth, with strong cash flow ,and consistent strong margins seem to be historically the best way of looking at value..and for a fast growing company 10 to 11 X revenue and for a slower growing company 1 to 5 X revenue...I hope this helps...PEX is for more traditional businesses and is a useful measure once all the moving parts are working and bringing in profits ..and we are told that very soon CTT will be earning profits...again a terrific sign.
Now you will see that the projected value of $2.30 based on projected Revenue of $90 Million is much higher than present price ..well until the Revenue arrives smart brokers will drive down price for each shake of the tree many apples will fall ie small sales ..will change momentum and create fear in weak holders and prices reverse so selling say 50000 shares... May induce enough fear for" weak holders" to sell 200000 shares ..allowing big players to accumulate something they know is great value ... ..today already 1.5 million shares have been done ..momentum buyers have now become momentum sellers...there is no value analysis by the sellers only fear ..it's going the wrong way..sell...Indeed The Opposite From What A value Buyer Does...now once the weak holders are out the price will reverse.
If you know shirts are good shirts what do you do in a sale ..you buy..The normal human behaviour is NOT TO ASK FOR HIGHER PRICES BEFORE YOU BUY !!!!!