Ann: Crowd Media Chairman's Update, page-130

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ricky_banker

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19/11/20

18:37

Post #: 48999764
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Originally posted by Pancake: ↑

Some call CM8 as a high risk (compared to what?) investment saying it is based on realisation of its business plans (future). They should know that the whole stock market is based on future earnings and future expectations of growth, new opportunities and announced business plans. CM8 is no exception.

Risk is higher in most small caps vs big caps. Junior mining companies, biotechs, tech companies, new fintechs all fall into this category of high risk investment. A basic principle in finance, high risk high rewards. Nothing new. That is why we all are here. So this applies to many small caps listed on ASX. People wanting less risky investments better off buying big caps with positive cash flow and paying dividends.

Risk of downside is particularly higher if a share price has gone up significantly purely based on future plans and without any revenue. We know lots of these exist on ASX. This is not the case with CM8 at current levels.

Among the small caps (tiny market cap) , a company like CM8 making $16m in revenue with positive EBITDA (though marginal) surely falls into the less risky category as opposed to High Risk as claimed by some here. Risk of an investment to someone is based on the downside risk from the entry price. At the current price of around 5 cents, I would argue that CM8 is one of the less risky buys on ASX with limited down side risk.

Share price not going up is not a risk - it is an opportunity lost.

CM8 price increase from here will depend on investors conviction of the potential as they see it based on already known facts. Also any positive company announcements will be received well by the market. Similarly any bad news will see share price falling - as usually the case with any stock.

So people making an extra effort to make it look like CM8 is a high risk investment may have to think about their logic again.

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Agreed.

Look at Xero XRO, their shh have a high conviction.

Share price $124.16
MC 17.40B

As at 30/09/20
EBITDA 120.8M
NPAT 34.5M
Free cash flow 54.3M
Customers 2.45M
Recurring Revenue

CM8 is too undervalued based on its current and future income

Anyhow this will be validated in Jan or Feb 2021.

CM8 Price at posting: 5.0¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

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Last 1.9¢		Change -0.001(5.00%)		Mkt cap ! $23.32M

Open	High	Low	Value	Volume
1.9¢	2.0¢	1.9¢	$51.96K	2.713M

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Price($)	Vol.	No.
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No.	Vol.	Price($)
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5	1601225	0.014

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Ann: Crowd Media Chairman's Update, page-130

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Ann: Crowd Media Chairman's Update, page-130

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