I don't want to knock the work you put in but cashflow,...

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Prodigalson7

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11/09/21

10:11

Post #: 55989357
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Originally posted by ShadowMonarch: ↑

True! Even better that it is in USD.I do agree that using Price/Sales Ratio is a VERY unreliable method. I am assuming the 40 is the Price/Earnings Ratio as this would make more sense. A PSR of 40 does not look right to me for a growth company with recurring revenues.
The market will usually place a higher multiple for ARR revenue type modelled companies. Netflix is circa PE 50, whilst Xero is at a ridiculous PE 1100 - maybe you're referring to this one? haha

Reasonably a 10% annual growth rate of paid subs is reasonable based on the current value proposition they have on Plus, albeit there is a very low ceiling to reach. Mainly because this is fit for a very niche industry. But, looking big picture we do have a TAM of $1.9-$3.8B where credits play a big role. Neighbouring rights have a TAM of $2.6B.

Even if Jaxsta can get a thin slice of either will shoot the SP up.

I'll probably look closer at where the most likely cashflow+ inflexion point will land as this is a better indicator of how the company is doing and how bad the CR dilution will be.

Hopefully this forum can shed more light and we all work together to formulate a better picture of where this company is headed.

I see a few posts being negative about the management but I don't think it is a point of concern yet. Management is focusing on key metrics that they think is important to propel the company forward. Before, I thought that the number of visitors a month is something they should publish but this info is irrelevant at this stage. This will only become relevant when the website is monetised via ads revenue. The last presentation they showed the amount of time on the site a visitor spends and it has increased, which tells me that people that are spending a great deal more quality time on the site than before - which means that people find greater value than before. Hopefully translating to increased conversions.

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I don't want to knock the work you put in but cashflow, profitability, is not something that should be in discussion. This is a growth company that is far too young for that.

Growth stocks (mainly tech and biotech) like Jaxsta can have their story supported based on signs of strong growth for a long time before revenue needs to show up. A $20m market cap isn't it. $200m. Maybe then.

The share price isn't going anywhere because it looks like we aren't growing like a junior tech stock should, because they are withholding the most important figures needed to drive the SP. We're going to continue to trade sideways until they get this right, but judging by the age of the board they won't.

There is a book by Mark Minervini called Trade like a market wizard (or something along those lines). It'll let you know that price to earnings (and sales) ratios are pretty much the most useless tool for any investor when it comes to growth stocks. You may want to read it.

JXT Price at posting: 6.6¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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