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wow it's still at 10x revenue after dropping almost 90%...

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chad987

2,922 Posts.

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15/12/21

12:40

Post #: 58307865
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Originally posted by Tsarr: ↑

Trying to decide whether this is an entry point.

Currently priced at 10x revenue, and that's being generous if we take their run rate of the previous most recent quarter. No profit of course but that's OK.

Only good thing I can see is that they have 50M in cash. But they blew through 18M in the last 6 months? Unless they raise more money, they'll be in administration in 18 months. They paid 5M in interest in the past 6 months, but they are sitting on 50M? Why would they do this...Only explanation I can think of is that they need cash on hand to be able to handle their merchants sales. In that case, the cost of doing business is more than the proceeds, and unlikely to change as this cost would be increase at the same rate as their merchant turnover.

One thing I hate about this company is that they put this merchant figure as the top line in all their statements. It's not the same as revenue at all and must surely be misleading to some investors that don't understand.

How many years of >100% growth does this company need before it'll be profit generating or just self-sufficient. At least 5 you'd think.

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wow it's still at 10x revenue after dropping almost 90%...

SPT Price at posting: 22.5¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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