I think this is very conservative, especially given their...

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vafooli

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13/01/17

11:42

Post #: 21872843
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Originally posted by pods ↑

I think atm, an optimal value for this company is at 50m.

That is, i think the market will apply some high risk to the revenues, because they are very new and we may still see some churn in annual customer renewal. What will drive the valuation above $50m will be accelerating revenues, cost reduction, increased margin or additional significant announcements regarding new sponsored content, new partnerships etc.

But i think for now, a valuation of $50m is probably where it should be and will hold if it gets there. After another 12 months of these sorts of revenues however, i think it can justify a valuation of 100m, and if revenue are still increasing at a similar rate after the next 18 months, 150m.

So i think it's highly likely, by July, we'll see a market cap of approximately $50 million or an SP of 0.43c. Then it's possible that in 12 months, close to $1. But this is contingent on revenues increasing at this clip, which I suspect won't happen. So maybe i good 12 month target is ~ 70c.

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I think this is very conservative, especially given their exceptional consistency in the last 2 years. Were very undervalued currently. I agree current MC of around $50mil is about right, but I think the growth will be more than your estimates. If the next quarterly is consistent with previous growth, We'll be over 100mil MC in 3mths IMO.

BIG Price at posting: 30.5¢ Sentiment: Buy Disclosure: Held
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I think this is very conservative, especially given their...

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