Ann: Trading Halt, page-196

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Jchandel

175 Posts.

22

17/07/21

10:52

Post #: 54569719
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Originally posted by steve10: ↑

I don't think Parton revenue will be $32.8M as mentioned by Dun & Bradstreet online.

$12M was mentioned as the revenue + $4M DW8 = $16M run rate if accurate.

DW8 was previously trading at about 40-44 x revenue run rate due to the triple digit growth YOY. The multiple went over x100 when SP peaked around 20c.

$16M x 40-44 = $640-$704M + $10 MC = $650-$714M MC / 1,783,729,424 shares on issue after $7.5M CR = 36.5-40.0c SP.

YOY revenue growth will be very high. For example, Q2 2022 should have a full quarter of revenue with the acquisition. Parton's revenue will be circa $3M + $1.25M DW8 = $4.25M / $712k Q2 2021 = 497% YOY growth. DW8's contribution may be as high as $1.5M depending on success of B2B market/DTC/Insider Trading. Revenue run rate will be circa $17-18M by the end of this year up from about $3M at the same time last year.

High triple digit growth attracts a high revenue multiple. Revenue could possibly grow from $17-18M x 4-5 within the next 12 months as well with more acquisitions.

Using a conservative multiple of 20 x $17-18M = $340-$360M + $10M cash = $350-370M MC / 1,783,729,424 shares = 19.6-20.7c.

If the revenue from the acquisition is circa $12M pa it should put a floor on the SP at around the 20c range. Throw in a few surprise announcements & SP could double to x40 revenue multiple or more then pullback accordingly. SP may even stay lower than 20c for a while until more figures are released, ie. Q1 2022 4C due in October.

SP should climb into low 10c's awaiting more figures etc. The 6.5c CR may result in a dip prior to the run up. I believe a few holders will dump on the news in an effort to buy back in near the CR price. When SP was circa 6c last year & WDA was acquired with shares being issued at 4.5c the SP dipped to 4.5c, however, there was a lot of additional downward SP pressure at the time from unlisted options & B2B delay was also announced.

Until we have all the details of the acquisition we are speculating. We'll wait & see what happens.

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Awesome stuff Steve!! Thank you.
so in summary, if Parton’s revenue is $12mil- there will be a rush for accumulation as the sp will most likely double by Oct .
sounds like a plan to me

Last edited by Jchandel: 17/07/21

DW8 Price at posting: 9.1¢ Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

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