Been an ESK shareholder for about 3 years, and am a little surprised at where the current market cap is?
Understand that revenue growth was quite low at around 14% last year - after much higher revenue growth of around 80% the year before.
And you definitely want small companies to be growing revenues much faster than 14%.
But this is an already profitable business - that has just announced results that show EBITDA % growth (up 33% to USD $3.468m) & NPAT % growth (up 51% to USD $2.193m) that was much faster than revenue growth
With gross profit margins increasing YOY, a positive nett operating cashflow amount of USD $2.165m, and cash of around USD $2.0m (and no debt).
And dealing with large public companies & government agencies like the Australian Defence Force.
And IMO there is huge upside with the Samsung deal (deal was just extended by another 5 years) & the Nokia deal - so revenue growth could / should get back to 30% + this year.
So not sure why the share price has fallen down to just 37 cents at one stage today (albeit still on low volume) - with a marekt cap of just $58m?
Is it just too boring a stock / company for most investors - or have macro conditions scared many investors away from this business?
As the share prices of heaps of micro caps (especially in tech) have obviously been hammered over the past couple of years.
ESK Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
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