Star Combo Pharma Ltd (ASX:S66) share price boost 100% in 2 days after listing on ASX., page-37

Cashflow positive after a few years of business. A great start.

Cashflow in strong uptrend as seen between '16-'17. A million bucks is plenty enough for me at this early stage.

But one swallow doesn't make a summer, as they say, so let's consider how that cashflow uptrend will look in another year. All indicators suggest it may be pretty decent. But that's the 'gamble' we take.

In Mervini's book that has been doing the rounds on HC recently, he demonstrates how EV is pretty useless as a guage in such stocks. He shows how many traders are put off when it is so high, but only for the stock to continue to rise. Here is just one example:



You can see on the next chart where he buys, which is at the PE 230x.