Compare the following charts.2019 Daily - on 2nd May 2019 got...

Compare the following charts.

2019 Daily - on 2nd May 2019 got above 100ema after 20 months trending down. SP 2.6c bottom to 5.3c in a week. Retraced to 50ema at 3.5c & within 6 months SP was 15c & after 12 months SP was 24.5c. 24.5c / 2.6c = x9.4 in a year. MACD crossed over into upper half.




2023 Daily - on 6th July, 2023 got above 100ema after approx. 25.5 months trending down. It appears SP could double again from 11.5c bottom to 23-24c where 200ema awaits as resistance. Retraced to 50ema in 2019 so may do the same again & retrace to around 16c allowing more buyers to enter. MACD crossing over into top half.




11.5c x 9.4 similar to 2019 = $1.08 in 12 months. Note that past performance is not indicative of future performance. Anything can happen.

I am expecting about x5 upside from 11.5c low = 57.5c SP in 12 months. Approx. $550M MC / $110M revenue allowing for 10% YOY growth = x5 multiple. At lower end approx. $330M MC / $110M revenue = x3 multiple equates to 35c SP. Current multiple is x1.74 & was a ridiculous x1.08 at 11.5c SP.

At $1.08 SP similar to 2019 rise the MC will be approx. $1B / $110M revenue allowing for 10% YOY growth = x9 multiple.

During peak SP at around $1.60 in May 2021 MC was about $1.5B / $15.5M TTM revenue = x96.8.

From x96.8 TTM at high end to x1.08 at low end it appears to be mean reverting.

A chart is simply a reflection of emotional investor behaviour.