I discussed CR before. In summary, raising $10-20M @ 20-30c later in the year for international expansion/acquisition is a positive.
In relation to valuation/MC, it appears as the addressable market increases the valuation is diverging from being revenue based. Also, the huge market penetration in McLaren Vale, a premier SA wine region, highlights that the logistics product alone is superior to what is currently on offer in the market. The revenue growth is phenomenal & currently trending at 50% QOQ or 406% pa. More acquisitions to accelerate growth have also been discussed along with international expansion.
The main product offering is the soon to be launched B2B. The global addressable market for wine, spirits, ciders, beers, non-alcoholic drinks & other items is enormous. The B2B buyer base is going to include restaurants, venues, hotels, bottle shops, online retailers, distributors etc globally. DT mentioned in a recent interview that international brands are queuing up & making inquiries without DW8 actually promoting there so the word is getting out globally.
Sometimes the market is not rational & values a company on very high revenue multiples as can be seen by some huge PE valuations on the ASX. Valuation based on revenue & growth is easy = revenue x growth multiple, but valuation based on addressable market is anyone's guess.
If the addressable global market for wine is circa US $300B then the addressable global market including all alcoholic & non-alcoholic beverages will be circa AUD $1T+ & 0.1% market share = $1B. It shows that you only require a small market share to generate big revenues. We have seen the market share possible within 12 months in Australia so you only have to extrapolate it globally to get an idea of what is possible revenue wise.
DW8 is not chasing a slice of a piddly $1-2B addressable market like some other ASX companies thus it is being priced accordingly by the market.
DW8 Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
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