So, as the quarter progresses, an exciting period of weeks are ahead for HT8 in my opinion. Here is a basic snapshot of my thoughts and synopsis for reference.
Current Market Cap = $33m
Annualised Revenue = $40m
Annualised Profit = $3.5m
A very undervalued company doing all the right things. Breaking revenue records, growing its brand, presence, customer base, and inventory. All things are UP.
This company is about to enter into its busiest period ever, and is well positioned in the hot e-commerce sector.
Black Friday & Christmas Sales & Boxing Day Sales. To me this means RECORD REVENUES.
This company is flying under the radar. The share price is far too undervalued right now, but in my opinion, this won't be lasting for much longer.
At whichever angle you choose to revise. Whether PE Ratio or Revenue to MC Ratio, this company can easily justify and command a share price of $0.40 today. I understand that seems a bit far fetched, but a look at a peer comparison. Another e-commerce company.
MYD My Deal recently listed. It's market cap is 900% higher than HT8. And it's profits are less.
Current Market Cap = $306m
Annual Profit = $835k
Market Cap to Profit Ratio for MYD = 366.5
Market Cap to Profit Ratio for HT8 = 9.4
If the market wanted to value HT8 the same way it values MYD, then, HT8 would be valued at over $1Billion, and $4.00!! Far fetched? VERY! Not realistic, and hence why I believe that MYD is ridiculously overvalued.
A more realistic valuation is found in other companies like TPW, KGN, etc. According to their valuations, HT8 remains very undervalued, and can easily justify a share price at $0.40 and still be argued considerably undervalued. Using their valuations as a guide, HT8 comes out with a fair share price ranging to almost $1.00.
Back to business performance and revenues, I expect to see revenues above $12m this quarter. Bringing an annualised revenue to almost $50m and annualised profit above $4.2m. This is being conservative. I emphasise, this is being conservative. Some other shareholders will debate that revenues this quarter will eclipse $13.5m. I like to stay conservative, so when I reach my analysis, if the share price comes back undervalued, the true reading will be VERY UNDERVALUED.
I believe we will see the share price move into the $0.20 to $0.30 range in the lead up to Christmas as e-commerce receives more interest and as the market begins to catch on that this is a hugely undervalued company, that can offer strong shareholder returns in the short to medium and long term future. Exciting times ahead, and a lot of share price movement to come soon in my opinion. Hold on tight, I think a strong close to the year is coming.
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