GSW (ASX) Overseas Interest in GSW

Originally posted by Andrew1234 ↑

I agree to a point Ronnie but just to point out, I feel you are making a significant beginner mistake you see over and over on HC - valuing a stock based on an arbitrary market cap of another mildly related stock.

Each stock has its own story...

UPD to my mind is very much a build it and they will come model - they feel if they can sink enough money and time in, once the network effect is in place management can extract profit out of it - they have 15% of the US market, why no revenue?? IMO UPD could be severely overvalued and there is a distinct possibility it will bomb out long term - unless they can show tangible proof of revenue execution I am personally staying clear - for me Mcap is way too high and too much risk - not advice but that is the way I see it...

GSW seems fairly valued to my mind at this point - though they have miniscule revenue, they have revenue and it is growing fast which is key (the model works) heck it is not cheap let's be honest, but the market is trying to be forward looking around current known contracts, and where things could be in 12, 24 months etc.

This stock could go either way - if they keep signing up large deals over the next few months, AND keep executing on the revenue front (even if just a high percentage growth rate) hold on to your hats mark my words, this could be a monster...

But if 3, 6, 12 months down the track revenue is not materialising mark my words as well this could really tank (and I mean wipeout)

One thing that gives me a lot of comfort is mangagement are ticking all the right boxes AND importantly the actual solution and business model seems to make perfect sense (rare with these type of concept stocks)

I am quietly confident and think we may actually be on something very special here but time will ultimately tell...

I have not sold a single share but not adding at this point.

Good luck, watch carefully IMO

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I looked at UPD too. 15% of the market I said, OMG, let's pile in. But wait, they haven't figured out how to monetise it yet and it's valued at what? It's a pass for me.

Telling quote re GSW, "though they have miniscule revenue, they have revenue and it is growing fast which is key"