Given the crazy sell side lately, I don't blame you for being...

Given the crazy sell side lately, I don't blame you for being pessimistic.

However, from what I can see from the company's history - my opinion is this:

New management has made a conscientious decision to reduced cash outflow and maintain cashflow positivity. It is a business wide goal to ensure that ARR is able to cover the OPEX of the company (90% was achieved in FY20, compared to 70% maintained by the old mngmt). SaaS businesses typically have extremely high margins ( <75%), and this is no different with MSL which maintains a similar level.

Given that ARR was around 18 mill last FY (COVID Peak), and ANRR (non-reccuring revenue) at 8 mill last FY, the total COGS should be about 6.5 mill (26*0.75). Assuming management can achieve their goal of ARR covering OPEX, the total profit for next FY could be guesstimated at around 1.5 mill next year (this is of course really simple but you get what I mean).

Of course its uncertain times but its important to notice that Q3 FY20 (new managements first quarter at running the company and when COVID was running rampant) was incredibly strong and the SP rerated 3 times its initial price after release.

Its almost unheard of for a stock to be cashflow positive, with positive net profit, running at a stock price of only 1xARR.

Everything of course is somewhat a gamble, but my presumption is that FY21 will be special.