Its Over, page-243

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    So what's happening in the 'energy optimisation' solution stocks?

    Nothing exciting by way of financial performance to date. Of all, EOL is the lowest profile stock but quiet achiever with almost $10m in revenues and the only one that is profitable albeit at $1m profit. This is why these stocks IMO not going to generate the large profit upside - after reaching $10m which is decent for EOL, its profit is only $1m.

    When these perceived growth stocks are at their early stages of growth, the focus is usually on revenues as they are not expected to generate profits, in particular revenue growth. At that point, they are touted as a potential Appen (ahem) but as soon as they start to reach a reasonable level of revenue as EOL, VIV and BIQ have -between $7-9m, people start looking at profit levels and cashflow positives and because both BIQ and VIV have yet to reach EBITDA positive, there is not much love for the stock despite their award winning technologies and revenue growth. Such is the irony! So BUD and BID are still at that initial stages , the former still promising (but not delivering) and the latter gaining some traction in the marketplace but possibly has ran ahead of itself. As soon as these stocks start climbing to $5m revenues but losses remain wide, people become circumspect about the company's long run path to profitability and their sp could actually fall instead of rise. Look at EN1, company had done everything to grow revenues and holders are not rewarded as sp moves south and they reflect the market's concerns about the company's longer term path to profitability . Another example is Nuheara (NUH)- growing revenues but still large losses, with sp pretty subdued.

    Essentially, when these companies were making their moves earlier on, the expectations have been a lot higher (dreaming of Appen) and now realising that it is unlikely to be the case, the exuberance has evaporated. As I previously stated, the stock's valuation has gone ahead of itself!


    Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9
    0 Stock Code Stock Price Share Base (mil) Mcap (mil) Annualised Revenues* Mcap/Rev (times) Gain/Loss% over 12 months Drop from All Time High
    1 BUD[/B] Buddy Platform $ 0.110 1,149.05 $ 126.40 $ 3.04 41.52 -48.8% -73.8%
    2 BID Bid Energy $ 0.135 850.00 $ 114.75 $ 4.60 24.95 487.0% N/A
    3 SIS Simble Solutions $ 0.160 129.92 $ 20.79 $ 2.80 7.42 -38.5% -38.5%
    4 VIV Vivid Technology $ 0.046 524.22 $ 24.11 $ 9.30 2.59 4.5% -75.8%
    5 BIQ Building IQ $ 0.054 251.54 $ 13.58 $ 7.32 1.86 -38.6% -93.3%
    6 EOL Energy One $ 1.080 21.18 $ 22.87 $ 9.93 2.30 129.8% 16.1%
    7 Share Base on fully diluted basis (including Options, Performance shares, rights)        
    8 * Annualised Revenue computed as 4 x Latest 4C Quarterly Receipts or Annual Report or as declared in 4C      
 
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