Not doing anything of the sort BullRaider. You can be assured that when I have exited XF1, I will post here on HotCopper (look at my track record, I do this for every stock i.e. DW8/NZS/360 etc.), but exiting XF1 now would be like cashing in the Night Watch painting for lunch money.
XF1 is worth at least (conservatively) 6x sales ($60m) given that it is growing at a CAGR of 97% across FY2015-19 (see below). Moreover, the re-rate associated with the inflection in cashburn is about to take place over the next 2 quarters. This is the right time to own XF1.
We will soon start to see XF1 move north on this chart to a higher revenue multiple. XF1 is clearly undervalued at a $30m market cap given its growth profile, gigantic TAM, strong retention rate, operating cost leverage and leadership team.
The right time to sell XF1 in my opinion is once the lower bound of fair value is surpassed (6x PSR -- $60m EV), which is approximately 33c. Even at 33c, long term holders will still find considerable value across the long term.
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