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martincooper

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23/09/22

13:19

Post #: 63846932
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Originally posted by SteveSage: ↑

$5m profit valued at say 30 times earnings gives a MC of ~$150m.....which is where we currently are

look I'm not trying to be negative, and with revenue growth perhaps you can sustain a high PE, but note that expenses have also grown (arguably faster than revenues).

Even with that, the biggest issue for me is the disconnect between ACV and receipts/revenues - mgmt need to re-calibrate that number if they want the broader market to have confidence in it because based on their definition, it should be reflective of what the business can generate from their clients now (not potential in 2 yrs time)....that ACV number made sense in ~4Q20 (you expect to collect the amount claimed at that point in the next 4 quarters), but since then, it has been disconnected

Anyway, not implying this is a poor company (they have certainly grown their business without burning tonnes of shareholder cash), and gaining traction, but I think investors should be realistic what it is worth given the returns they are generating.....either reflected through the cashflow or the official accounts....ACV IMO cannot be used to value this company

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Hi, this is an interesting view and thank you for sharing it. I have been watching this company for the last two years and they are indeed doing well, however the market cap seems disconnected.

Hence this question, what is factored in the current market cap?

For full disclosure, I am interested in buying but at the right price and at the moment I still believe that I would overpay.

Last edited by martincooper: 23/09/22

3DP Price at posting: 21.5¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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