Appreciate the logic from both Strauss and Tiger. I see valuation to be at least a couple of cents more than 1.6c that this stock is sitting at. I don't think Simon is done with acquisitions just yet, with now $2.7m still sitting in the bank after paying $0.5m upfront for eStore, if this current quarter is at least cashflow neutral.
Having said all that, try convincing the seller sitting on the 1.8-2.2c stack since last year, pushing it down each and every time a positive milestone is achieved:
- Oct 2014 - $3.5m revenue announced in 4C proving that YHD is no dud
- Jan 2015 - $4.3m record revenue and positive cashflow announced in 4C
- Mar 2015 - acquiring profitable business in eStore and getting close to $30m in total revenue.
There's been plenty of mainstream media coverage in the Australian latest being "Crean pins $30m as the magic cashflow number"), so more buyer support at this price seeing value will come through eventually, which means the seller currently sitting on the massive slab pushing everyone down will struggle to cash out alone or short the stock further.
Does it sound like someone digging heels in? You bet.
Appreciate the logic from both Strauss and Tiger. I see...
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