Should they manage to achieve 55m in total sales that would require 6.4m in sales in Q2. In Q1 report they stated they were expecting material sales volume from EVS water which is obviously open to interpretation depending on your definition of material. Should they have achieved that mile stone in a quarter that would be a 60% earnings increase from Q1 to Q2. That’s a big ask but off a low base anything is possible with high growth penny stocks that are leaders in their field. If this company is serious about its prospects and achieving circa 100m in revenue by 2023 as they previously forecast then we should expect them to not just be beating their previous last quarters, but to be smashing them. There’s still quite a way to go obviously but they did raise capital partly to fund sales growth so at some stage we shouldn’t be surprised by a big lift in sales adding to ARR. As soon as that happens our current 24.5c high for the year has to be left in the rear vision mirror as has happened with other tech stocks. This one has minimal debt so that should make a significant difference moving forwards as an attractive prospect to value investors looking for a safe place to invest their hard earned as we head towards profitability.
EVS Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
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