BIG (ASX) Ann: Substantial Shareholder Increases Holding in BIG

Originally posted by juneauquan ↑

The share price at the time of this Dec Ann was 17c.
This ANN stated 'cash receipts' were to be about $3.8m and they should become cash flow positive (ahead of schedule)
The share price is now $3.90

So why has the share price increased 2000% since this first of many brilliant announcements
The numbers speak loudly

Oct-Dec 16:
Cash Receipts = $4.0m
Cash Flow = +$376k

Jan-Mar 17 :
Cash Receipts = $5.6m
Cash Flow = +$1.47m

Apr-Jun 17:
Cash Receipts = $9.4m
Cash Flow = +$3.83m

Jul-Sept 17:
Cash Receipts = $15.0m
Cash Flow = +$5.6m

For the past year. the market has been continually trying to catch up to the 'numbers' BIG is putting up. These numbers show remarkable, unprecedented growth. I mean just think the cash receipts in the March quarter ($5.6) is the same as the cash flow in the most recent quarter.

The market is still NOT pricing in the type of growth we are seeing.

The market still does not know.

I have actually seen some uninformed 'experts' comment on BIG revealing ignorance to everything and all. I heard one such expert refer to BIG as a media' company and that media is dying so he didn't understand why BIG was being so valued so highly without being profitable.

Today I looked at GSW (congratulations on holders of that company) and now GSW is being valued at $700m. Higher than BIG. I love the story of GSW. But that MC! Too much hype built into the share price and hyped up companies scare me.

So I bought some more BIG today. And I will buy more BIG if the share price stays at these prices.
Why?

I have a feeling that the market will be trying to catch up to the 'numbers' BIG generates for quite a while. Maybe in a few years the market will eventually catch up. May even put a premium (hype) into the SP. But by then the share price may be many multiples that it is now.

This is the most intriguing story on the ASX we have seen for many, many years.

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I agree. The market can't keep up. I expect if the BIG SP went to $5 by June 2018 BIG would have a P/E of about 15. That is unheard of for rapidly growing companies like this. Based on increases in revenues over the last two years the SP would then have to increase by a multiple of 5 to stay at that P/E at the end of the 2019 FY. This could be anything.