Made an error....Lesson....never try and sound smart whilst drinking before proof reading and posting a message!!
cutebaby,
firstly what do you consider a short period?
3 months is short and in this market I can see hct getting to $1, 270m market cap if they present to the market a business plan that's achievable.
They certainly have the product that's in demand
However if hct can generate revenue of $100m and assume a profit margin or earnings of $50m in 12 months then $1 is cheap cheap and realistically they should have a market cap somewhere around $500m and a share price close to $2-2.50
It's called a price to earnings ratio or PE.
Google it to understand but in simple terms if a company has a PE ratio of 10 essentially that means for every $1 they have in earnings EBITA their market cap should be $10 being the price of the share.
Some growth stocks have PE's of 40-50 but have consequently been hammered in this market and flight to safety.
I think and some here will correct me as I'm probably wrong but in the ballpark, that historically a fairly valued market has a PE ratio of between 8-14 depending on where we are in the economic clock or cycle.
Work on a PE of 10 and you can apply a rudimentary valuation.
It's the earnings that will drive the valuation of this company going forward, but the market is huge and it's screaming out for something that kills covid 19 that's non alcohol based you can use constantly, daily that doesn't destroy your skin.
Good luck
HCT Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
