One thing you may be overlooking here is that Canaccord have factored in some very high costs to allow for massive expansion which could be for worldwide offices etc but it was said in a recent meet that they have been very conservative as the numbers/valuation might have looked silly. It was said that they (1PG) no plans on spending such a high amount but that the ramp up in revenues will happen very quickly for 1PG.
Note here that 2016F revenue (end Jan 2017) is $76.4m with COGS of only $9.4m giving a gross profit of $67m. Yet they then jump to EBITDA of $26.9m?? They have factored in huge spending on growth where it is not needed and that management have no intention of spending imo.
I believe that Canaccord are very comfortable with their figures.
1PG Price at posting:
$4.68 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
