@ marcuzley - g'day!!
The answer to your question is that the market is a mysterious beast sometimes
In all seriousness, there is probably no simple answer to your question.
I don't know TNT's business very well, but IMO the "revenue to market cap ratio" should be much higher for WHK because:
1. They have an extremely & relatively fixed low cost, and they have very good & improving gross profit margins.
Therefore WHK is likely to be profitable from revenue levels of only approximately $6m pa (and highly profitable when revenues crank up from there) - whereas as you point out, TNT needs significantly higher revenues to reach profitability (eg you mentioned TNT needing revenues of $100m pa to be profitable).
2. WHK's CEO's (Terry) background & US Government Contracts / Contacts - there is no doubt in my mind that this is a huge positive for WHK.
As Terry would know, through her background, many of the US Government decision makers intimately.
3. WHK's revenues are highly scalable - this is similar to point 1, but as their system is a platform, it can be used right around the world (with not many "feet on the ground" required).
Red day for WHK today, but the Quarterly was a very strong report that demonstrated great progress - so I have no doubt that the SP will roar back into the 40's again soon.
Hope this helps!!
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Last
1.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $6.833M |
Open | High | Low | Value | Volume |
1.5¢ | 1.5¢ | 1.4¢ | $14.34K | 1.020M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
18 | 2072847 | 1.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.5¢ | 1304082 | 6 |
View Market Depth
No. | Vol. | Price($) |
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17 | 1995924 | 0.013 |
14 | 8213084 | 0.012 |
4 | 2445368 | 0.011 |
7 | 677974 | 0.010 |
3 | 736000 | 0.009 |
Price($) | Vol. | No. |
---|---|---|
0.015 | 1304082 | 6 |
0.016 | 287879 | 2 |
0.017 | 380010 | 3 |
0.018 | 1061172 | 9 |
0.019 | 1270000 | 2 |
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