At $0.07 this company has an enterprise value of ~$133m.There...

At $0.07 this company has an enterprise value of ~$133m.

There are SEVERAL IT/MSPs on the ASX that have the same or similar revenue as Tesserent, better EBITDA, better cashflow, strong balance sheets and organic growth. Their EVs are in the $35-$60m mark.

Before you take a deep breath to lecture me on the difference between MSPs and MSSPs, just remember that BOTH are services-based offerings, both require specifically trained staff and special software solutions, both are about outsourcing and covering for a lack of in-house capability, both are technically benefitting from the same massive industry tailwinds (cybersecurity, the move to cloud, distributed workforces, etc) and IT budgets ALWAYS supersede cybersecurity budgets.

There's no reason to be paying $133m for an unprofitable company with no turn around in sight and promised dilution and increasing debt as the stated management plan for the next three years. They're already trading at 15x made-up management earnings.

If I had to guess, the price will bottom out at 6-8x EV/OpEBITDA because only then would anybody with a calculator be interested in buying any substantial sum of shares. I'll let you figure out where that line is on the chart.