Interesting quarterly, going by their last quarterly they anticipated cash outflows for this quarter of $550,000 yet they came in at over $2.2 million. Quite concerning that the Company can not achieve anywhere near their forecast spending. Nearly 400% over forecast expenditure is a good reason for concern.
Another company i have been watching in the aquaculture space has been AS1 who looks to be going from strength to strength. Its interesting to see both MCA and AS1 grow side by side each quarter and puts into prospective how markets can value companies completely differently based purely on hype.
| Dec 2018 Quarter | AS1 | MCA |
|---|
| 1 | Shares on issue (Fully diluted includes options and performance shares approx.) | 143,000,000 | 497,000,000 |
|---|
| 2 | Share price (31-1-19) | $0.125 | $0.16 |
|---|
| 3 | Revenue | $1,029,000 | $627,000 |
|---|
| 4 | Revenue increase | +106% | +10% |
|---|
| 5 | Loss for the quarter | -$477,000 | -$1,838,000 |
|---|
| 6 | Market Cap | $17,875,000 | $79,520,000 |
|---|
MCA didn't really comment on what to expect next quarter or the rest of the year outlook yet AS1 management reconfirmed that the business is on track to reach cash-flow positive operations for the 2019 FY.
Why such the vast difference in valuations? Any ideas? I enjoy following both companies but trying to come to terms with how they are so vastly different in valuation.
I think both MCA and AS1 have a bright future and the aquaculture industry in Australia will only continue to gain more and more attention so i really hope MCA can make some ground towards being cash-flow positive as it will only be good for the whole industry.
(20min delay)