It shows the market is in a bullish mood. The market is prepared to place outlandish valuations on stocks.
Numerous stocks look to have unrealistic valuations, e.g. ADO's market cap this week hit 240 million. Is it worth that? Obviously many think so. There's a lot of expectation that a big deal is on the way. If a deal does appear, how much money will they really make. How long before the money starts flowing. Lots of unknowns.
In comparison MBE certainly looks undervalued in a bullish market. It operates in a high growth market. It's making money. It looks like it will make more next year based on the 5.35 million worth of advertising already secured. Not to mention overseas expansion. How much money will they make from overseas operations, could be a little, could be a lot. Yet the market seems to be blind to MBE at the moment.
MBE Price at posting:
28.2¢ Sentiment: Buy Disclosure: Held
