Joining the dots, page-11

That will unfold in months to come but generally junior tech stocks don't get valued on profit but revenue because of scalability. This is not a really great long-term measure as its often wrong but I'll go through it a bit.

Firstly, to do a traditional analysis you would need to know margins on sales and total overheads. The issue with this as a young company is that overheads often dominate the equation and the margin is really depressed leading to undervaluation.

Secondly, what we have seen recently is a P/S (price per sales, or price per revenue) model being adapted to overcome the shortcomings of the above valuation model. Generally people use 10:1 price per sales however it also depends on sector etc etc (which assumes long term margins on sales of around 12-15% and a certain amount of over-heads).

So the profit may not be there currently (not sure) but the valuation model generally applied for a company at this stage of its life is revenue / sales, which even using bargain basement valuations of 3:1 this company would be grossly undervalued if what Marty is saying is true.

The issue is that the market hasn't seen it yet, so in a few quarterlies of consistent revenue growth this will go from undervalued to fully valued.