5GG 14.6% 4.7¢ pentanet limited

Ooops .. apologies for the poor word structure above. As is...

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    Ooops .. apologies for the  poor word structure above.
    As is often the case of late  I pressed ‘send’ before reviewing….
    That  sometimes haste to push buttons seems to be not ideal in ANY situation:/.


    For anyone interested, another non-emotional and (alas) somewhat negative perspective on Pentanet as an investment (at this point in its’ history?)  comes from the AI machinery of Simply  Wall Street
    [see website story here]
    Here’s an excerpt ;

    ….. Unfortunately the Pentanet Limited (ASX:5GG) share price slid 34% over twelve months.
    That's well below the market return of 7.0%. Pentanet may have better days ahead, of course; we've only looked at a one year period. The share price has dropped 42% in three months.

    If the past week is anything to go by, investor sentiment for Pentanet isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

    Given that Pentanet didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development.
    Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

    Pentanet grew its revenue by 118% over the last year. That's a strong result which is better than most other loss making companies.
    Given the revenue growth, the share price drop of 34% seems quite harsh. Our sympathies to shareholders who are now underwater. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized.
    Our brains have evolved to think in linear fashion, so there's value in learning to recognize exponential growth. We are, in some ways, simply the wisest of the monkeys…… [click here to read on].​

    hmmm … Personally I not too impressed with a machine-based entity reminding me of my monkey status after a few recent actions but the presentation of numbers may be useful to those who have not seen the story.

    Cheers
    Last edited by sabine: 30/01/22
 
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