Ann: Unith Accelerates Global Rollout of Digital Humans, page-9

Like most of us, I received a welcome email from Unith this morning as per the ASX announcement. Scrolling down, I again watched the YouTube video featuring the APH application and I then reread the Pitt Street Research report dated 24 October 2023 which was also attached. An excerpt from that report is as follows:

Valuation
We reiterate our valuation of the company (last updated in our 10 March 2023 report) at $70.2m base case and $108.7m bull case, equating to 8.2c per share and 12.7c per share respectively (Figure 3). We note that last month’s capital raising, increasing the company’s shares on issue by over 100m, has reduced the final share price from what it otherwise would be. But for the capital raising, our implied price would be 9.8c in the base case and 15.1c in the bull case.

So the above paragraph is 20 months old. Back then our B2B was pretty much in its infancy, InterFace was almost a year away from launching and our Digital Humans were nowhere near as advanced as they are now yet our theoretical Market Cap valuation was calculated at 7 to 10 times what is it today. Yes, I know these sorts of reports can maybe show favourable figures sometimes although they also have reputations to protect by being as accurate as possible as well. So given that back then if we were valued at $70 - 109m and we've clearly progressed enormously since then, why are we sitting at $11m now? How can the market be so out of whack? The take up of AI and the understanding of what it is and what it can do is on a parabolic curve at the moment. One just has to look at the valuations of some other AI companies listed on overseas indexes to see that yet here we are sitting on the floor still. It's a helluva why question isn't it although when the market does wake up, it should be a storming reversal. Food for thought.