What do y'all think, what would a rational person do?Its your...

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>Russ<

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42

24/11/21

20:25

Post #: 57828935
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Originally posted by techlord: ↑

Ugh this report was not what I wanted to see. I have said earlier that we really needed to see them on track for 1mil revenue this quarter, even though it was a bit of a long shot, but they are trading at too many multiples of revenue currently, there is a serious downside risk or at-least stagnation for many qtrs is on the cards.

If they get 600k for the qtr that brings their annualised growth in revenue at something like 30-35% judging off the last qtr, that is too low this early in the game, it means they are years off matching other dog stocks in the sector like SPT and QFE, admittedly IOU have more going for them than either of those two, but not if they can only maintain the current growth rate. A few thoughts I have here;

1. I think we have more to drop this qtr, wont be surprised if we end up in the low teens at some point.
2. They need to double their revenue annually at a minimum and be able to communicate a clear pathway of doing so, otherwise 30-40c is not achievable for years, assuming they dont go broke first. Thats not what we want here.
3. At the current rate if we can see 750-800k by years end I'll be amazed, and if we see anything under 700k for the qtr then wont be surprised if we drop below 10c early next year.

Unfortunately, Im seeing 650k as the likely number for end of qtr which puts me in a bit of a pickle really. I either need to sell this qtr at the best opportunity, which is prob in the next week or so tbh, or bet that price will hover where it is and hope for a significant change in sentiment in q1. Cant see the price improving this qtr without some major announcement, I'm seeing the only real answer is to sell now and buy back later if things change. What do y'all think, what would a rational person do?

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What do y'all think, what would a rational person do?
Its your money and your risk
its a question that shouldn't be asked on HC

IOU Price at posting: 18.0¢ Sentiment: Hold Disclosure: Held
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