Buckle up for $1, page-390

I can only pick out metrics that have become known. And Canaccord have a broker review. It appears based on all I can see that Atomo is profitable right now. It appears they will make (according to me) about a $9 mill ebitda for this fin year. They are profitable. Canaccord think they will make 1 cent eps this year. And I think they went as far as 2 cents for Jul21-Jun22.

That is the problem with a growth stock. You cannot value it based on where it is today or even what you think next year. You have to project out a few years using sales and margins.

I have not read the IPO document. But note that post IPO the share rocketed and settled in the 50s. Now I dont know why Mr Market thought it worth 50s. Then, of course, it ground down, and settled in the low to mid 30s. But that was before a heap of good news on contracts and even financials good news.

It is really impossible to value the share. Note that the auto share pricing app called Simply Wall Street projected growth of 85% over three years and declare the value OVER $2 per share.

My ballpark 'guess' is the value of the share should be around 40 cents. How do I pick an ebitda for 21/22. Can I 'guess' $20 mill. That is really the bottom end, according to 'me'. So, I will say a growth stock with ebitda at $20 mill does deserve a market cap of over $200 mill. 40 cents is about there.

Now if eps in 21/22 is indeed 2 cents, well, for a growth stock, a PE of 20 is OK - and again you get your 40 cents.

But, that is assuming all goes OK. And, of course, if all goes BETTER than OK, then the price can be much more. It all depends on the volume of sales - the markets that can be accessed for the device.

Honestly, it all looks great. But who knows the future. Again, Atomo cannot be valued on what you see only today or this month or next month.