BUD buddy technologies ltd

@svenf as ive said before - 30-50x p/s ratio is the benchmark...

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    @svenf

    as ive said before - 30-50x p/s ratio is the benchmark for high quality very high growth SaaS rate tech stocks (ie stocks that assume very low marginal cost per $ of sales acuired)

    So that suggests $20M- $33.3M in confirmed sales @ that SaaS multiple could get the company to $1Bn mkt cap - or about $1/share on current share issue

    The company already has that level in contracted theory - but it has to prove its actually reeiving the money & how much money gets burnt in generating the earnings

    Tha looks to be about 12 months away - though the market will start to price it in advance if the March quarterly numbers confirm high dollar inflows vs low outgoings

    When it does the stock will move

    but keep in mind share prices are driven by both earnings and market sentiment. BUD fell 20c-5c both because it had no earnings - but also because tech stock sentiment cooled in the listed market for about a year

    So you cant just assume - well because earnings are going to be 'x' - share price will be 'y'

    that said the key to fast share price rise is
    a) rising earnings
    b)no/minimal dilution (ie company doesnt need to issue many mnew shares to finance its growth)

    BUD showing a very rare prospect of super high growth rate ona product thats immediately cashflow positive

    that means serious dilution risk beyond the 1.034Bn shares already factored into its share price - is pretty much only for major mergers/acquisitions or other big pivots


    trust that helps
 
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