Agree Jordan. Note your blog and wonder if you have any thoughts...

First 54 Last

Share
Profile

Follow
Acca

2,488 Posts.

1313

24/01/16

08:32

Post #: 16858099
Share

Originally posted by jordantravispyne ↑

I do not mean to be overly critical of the research report by Baillieu Holst but let us just look at the facts.

They completed the capital raising at 2.5 cents.

They have selected an arbitrary EV/Revenue multiple based on the mean of 'SAAS Peer' companies which include Xero, Atlassian and Linkedin (I would argue this is entirely inappropriate). This lead to a 12 month target price of 8 cents.

Their discounted cash flow model has a target price 0f 18 cents. They ignored this due to uncertainty of Velpic cash flows yet were happy to compare EV/Revenue multiples of companies with certain cash flows (large SAAS companies). This is where I believe the research report is flawed.

This research report does implicitly state that the value of this opportunity is unidentifiable with any means of precision.

I believe it is rather amateur to put such a precise target price on any stock let alone one whose future is as fickle to calculate as Velpic.

It is important that Baillieu Holst concludes it is likely that a conservative intrinsic value for this company is higher than current levels. This is not unlike the opinion of current holders and any 'target values' are just opinions based on assumptions that may or may not be appropriate (give your own analysis more credit!).

Expand

Agree Jordan. Note your blog and wonder if you have any thoughts about the upcoming quarterly?

VPC Price at posting: 5.0¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

NEU

Neuren Pharmaceuticals dips after pediatric Angelman Syndrome Phase 2 trial results fail to impress

Bitcoin: Current State of Play & Where to Next | Swyftx

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

Dale Gillham's weekly wrap: picking resilient stocks in a volatile global market

HZR

Hazer Group reports ten days of continuous operation at graphite-manufacturing test facility

Week 32 Wrap: AI is clearly overhyped – but did we see ‘bubble’ burst already? Plus RBA decision; Japan’s wild week & Google ruling

Emerald & Azure score Digger & Dealer awards

TNC

True North increases silver metal at QLD's Vero deposit by 20%

TKM

Trek Metals jumps 5% as gold & REE drill run kicks off at Christmas Creek in the Kimberley

Revolutionary inverter technology leads the clean energy charge

There are more pages in this discussion • 42 more messages in this thread...

First 54 Last

Add HHI (ASX) to my watchlist

Agree Jordan. Note your blog and wonder if you have any thoughts...

Top Stories

Neuren Pharmaceuticals dips after pediatric Angelman Syndrome Phase 2 trial results fail to impress

Bitcoin: Current State of Play & Where to Next | Swyftx

From the Floor with Federal Opposition Leader Peter Dutton at Diggers & Dealers 2024

Dale Gillham's weekly wrap: picking resilient stocks in a volatile global market

Hazer Group reports ten days of continuous operation at graphite-manufacturing test facility

Week 32 Wrap: AI is clearly overhyped – but did we see ‘bubble’ burst already? Plus RBA decision; Japan’s wild week & Google ruling

Emerald & Azure score Digger & Dealer awards

True North increases silver metal at QLD's Vero deposit by 20%

Trek Metals jumps 5% as gold & REE drill run kicks off at Christmas Creek in the Kimberley

Revolutionary inverter technology leads the clean energy charge

Featured News