Euroz also quoting 50cents target price. To me as an outsider, this company is starting to provide not only customers signed but customers that have gone live on their platforms. We are getting real time data on when a country within a client commences live so we will know that means sales. A company would only do this if its confident of successful implementations and revenue. It would be suicide to report customers being implemented if you did not expect significant revenues. Otherwise why do this?
The share price as it is does not reflect any of the upside for actual customers signed, Cash security of having $120m in bank and the time and resources for a successful implementation of customer signed..
These are huge customers who appear to be in extensive implementation mode so IMHO its time to buy as once sales are reported, breakeven hits this company is going to be re-rated by Institutional investors and it wont be 18cents a share IMHO by end 2021 calendar year. Some have gone early with their future valuations of 50cents so good luck to them.
My Opinion A conservative person would say why did they raise $20m when their burn rate base don June 2020 full year statement was $6.9m for full year or $$582k per month. So that would mean to me the company are giving themselves the funds for the growth, the time to bring these HUGE customers on line and give existing shareholders who got in early to get all the gain from here on. In many ways the $20m cap raise was essential dilution to give cash to allow for the growth. Profit speculation and perhaps hopeful but here is my pie in the sky hope for this company and why I am here.
I don't expect Dec qtr to be huge sales but I do expect more revenue than last qtr and by end of calendar year 2021 I am hopeful of breakeven, small profit. so 50cents is possible . Given its only $1.5m costs plus say add extra costs for implementation of $500k for add on sales then sales only needs to be $2m a qtr for breakeven. My thoughts is that the sales forecast internally will be much greater than this for such large customers.
Costs for some tech disruption companies is sometimes only 10% of the actual sales. So for us that means the existing cost structure should be able to handle about $80m in sales . Some technology entities operate on a 90% profit. Yes that right. They sometimes have to be this high to recover development costs. Noting YOJ has been in development for a hell of a long time so pay day has to come. If its got sales now its time to repay the believers!
Lets be conservative so if the profit is $60m p.a(I used lower than above) in 18 months time whats YOJ worth? Your guess is as good as mine but mine says its possible to be-----drumroll
At 20 times earnings for a technology company thats $1.2b or around $1 a share approx. Thats why I am here. GLTA shareholders and DYOR and this is just my speculation.
YOJ Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
