It's just the beginning for Spenda!, page-185

@Charlieinvest, this won't be a popular opinion, but I don't think there's anything amiss. This is called 'reversion to the mean'. People on this thread are hoping/predicting an eventual return to 10c, but consider that would mean a market cap of $293M, or a price/sales multiple of 179x (using the last 12 months revenue). That's madness. For a comparison, a high-quality (and expensive) tech growth business like Xero trades on a price/sales of around 19-20x. Even trading on 10x sales implies lots and lots of future success is priced into the business. In fact, there's a famous quote from Scott McNealy ("what were you thinking?") about how crazy it was that his Sun Microsystems business was trading at 10x sales at the peak of the dot-com boom. You can read the quote here: https://medium.com/@Bentan1/what-were-you-thinking-fea15ec6c09d

With that in mind, consider that if Spenda does hit Adrian's targeted 40% Q-on-Q revenue growth over the next two quarters, SPX's FY22 revenue would be $3,077,400. At the current SP of $0.031 that means it is trading on 29x sales (and if you use the trailing 12 months revenue, it is on 55x sales). That's why I roll my eyes when posters talk about how "cheap" these prices are. If SPX was trading on 10-15x sales, the market cap would be between $30.7m and $46.1m, or a SP between $0.01 and $0.016. I am not predicting it will go here (who can fathom the madness of the market!), but purely on a price/sales multiple, that would be more in line with how these businesses are traditionally valued, in my opinion. The fact this stock was given such a lofty valuation - and managed to hold it for so long - is what got it on my radar in the first place.