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The business is scalable. You have to look underneath the...

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SensibleInvestor

166 Posts.

13/04/17

20:11

Post #: 24069024
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Originally posted by Muss1 ↑

OK, so the market cap is over $400m. Annualised revenue is $24m. Profit is ?

Let's use a market cap of $400m. I can invest that in the bank with effectively no risk and achieve a 4% return. That's $16m profit per year. The company is miles away from achieving this. Quite how far I don't know because they haven't actually made a profit yet.

Those that think naysayers are off the mark need to consider how much risk is involved with this investment.

It looks like they've got a good product (which is what has attracted me to AFY), but an investment at current levels already has a phenomenal amount of growth priced in. And with that comes a huge amount of risk.

Please consider this before blindly waving away people with negative views.

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The business is scalable.

You have to look underneath the numbers...

For example, why don't you do the maths and look at the current earnings, and if it continues at the same rate - at one point will they profit?
Then project it further, how many quarters will it require?

Netflix's P/E is 334... why do people invest in that?

This is not a miner that's drilling, that's not potentially earning.

AFY Price at posting: $2.46 Sentiment: Buy Disclosure: Held
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