Where is Fair Value?, page-5

Great post @I.

I agree that we need to see some form of accelerated growth as a catalyst to get the share price moving forward again. The historical growth rate of 30% per annum is solid but it is accelerated growth that will take us back to 7-10c and beyond.

Don't get me wrong, I am expecting some form of accelerated growth in Q3 and Q4 (which should take us back to 6c at least) but I am not expecting anything phenomenal, simply based on historical performance and track record.

As Star points out, 16% QoQ, is the best quarterly result that 1ST has ever achieved. 16% QoQ is a very strong result (80% CAGR), but it is not world class SaaS growth.

I've not sold a cent recently and certainly don't plan to because I believe we are well below fair value and will return to 6c minimum in the coming months.

In terms of the pivot to growth from cashflow breakeven, I think this is driven off the realization that the 1ST business model is very strong (reference the LTV to CAC ratio) and that it is therefore critical that 1ST undergoes a land grab and secures as many sites as possible which will later become a huge asset for the company once they have some pricing power.

1ST is currently cashed up so I am not expecting another CR at all this year, but when the share price recovers I wouldn't rule out a CR in CY2021 if it helps push the growth agenda.

Lastly, I think 1ST has steered away from guidance and bullish forward commentary because of an understanding that moving forward, the best approach is to underpromise and overdeliver. I agree with this approach. Most microcap management teams do the opposite. It will be important for 1ST to underpromise and overdeliver from here on in.

T.E.P.