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Agreed. I did not see the dip to .48 but I’m committed to reaching a specific amount when the price is at .50 so far 18k has filled in the last few minutes. And I just about out of gas. But just a little more.
If it dips, I’ll be all in. And also I hope I’m not a fool. I expect numbers to come in this year and the MM’s are accumulating I expect as much as anyone. And other investors will come at .50 and below seeing support at .43 they can take the risk at .48 which can be new support.
Hell no one knows the short term.
At the moment it is still a penny stock on otc pink. It’s 0.59. And they just started really growing fast the last 6 months. The building comes in time. It takes time to do all the stuff they are doing. All we have to do is watch the price. Give them a chance to get some quarterly reports done.
Peterpan, I totally hear you. I’ve been estimating 400MM shares for 100MM in revenue for a while, so for me if there is any additional revenue beyond 100MM for those 393MM shares then I am still on track with my estimates. CFO is important, but posting revenues in the 20MM per quarter and higher is also just as important for a pink sheet company. Yes, for uplist and growth and Nasdaq they would do well with a strong CFO, but many $5 and under stocks on NASDAQ may not have a super strong CFO and may have an iffy board.
What you want is logical for the 1BN market cap we all want.
My thoughts about waiting.
338MM shares versus 393MM shares. .59 or $1.20 in six months.
Let’s say they buy a 15MM company now or a 20MM in 6months.
If they have a 7x multiple on revenue, and can organically double revenue in 12 months for the acquisition...
When you look at buy versus build, timing is critical to gain a foothold before EV rolls out more.
Even if they bought a decent sized company that cost more shares, the revenue increases over the next two years in this space make buying it early a prudent move. It will allow them to grow share price more as the new business grows with them versus as a competitor. Waiting in some cases is not the best option.
The market is hurting themselves and shareholders, not really them.
Could they wait? Yes.
Should they wait? Maybe not.
When this hits $1.37 again, everyone will want in.... and we will hit 2000 on ST.
What surprises me is that people are losing interest because there is no momentum.. don’t they realize that the quiet before the storm is the most exciting place to be?
Sure people love to jump on things already going, but the guts to believe in something before it’s seen by everyone is so rewarding when it happens.
I know everyone here has a lot of hope and believe in the company.
Patience. And just let them do their thing. Grow the business and make $$$$.
Haha. I know, right? Let’s just say there can be different ways this may go up from here. I would love to see 1% a day for 1 month straight. I would even except 3 steps forward and 2 steps back... smaller steps back of course.
If this continues to ride the bottom of the trend line, it will still be going up over the next few weeks, etc.
Good deal spence. I’m at my limit finally.
Now the question is will it go up fast enough that I am not tempted to sell too many too early. I would like to hold a bunch to $10 and not start selling until $2.50 but it’s just harder the longer it takes to go up. I would love to see it stay low until it starts going up 100% a day. And it would do that for 4 days straight.
$0.60
$1.20
$2.40
$4.80 that would be sweet!!!! Only doubling for 3 days would do it.
It will likely be more like
.60
.80
.70
.69
.90
1.30
.99
.89
.90
.92
.97
1.00
1.03
1.20
1.15
.85
Etc etc
Yes, and I finally have enough shares that I think I could hold 100k for $5 maybe. I’m really hoping for some good days and nice slope up soon. It would give us all a boost after the long slide down.
We’re fighting the dip but I just had one filled at 0.585 for 5000 shares. I’m pretty amazed the desire to push it down, but I have a guess the desire is to collect and have it go up quickly at some point.
How many of you are buying under .60 on a regular basis?
I went crazy and have bought 45,000 shares today. And it still seems to have top pressure.
We’ll see what the day brings at the end of the day. Hopefully there is support for a bounce at some point.
GLTA
Plus, when I do this I already have a belief that any extra shares I obtain will be worth $3 if I hold long enough. And if I sell at .645 and it runs to $0.90 will I be unhappy? No. Because I put some into cash and my goal with 423,000 shares is to hold 180,000 shares to $5, which gives me a lot of room to sell on the way up to have cash to buy dips. If I time it wrong, I just try later. I’m going in and out with 5,000 shares on average just making a few hundred here and there and gaining shares when I’m right.
I was down to 190,000 shares for a while but when it hit .45, I made up for that with cash I borrowed from my core, which I need to put back. And when I sell at .70 and it comes down to .59 I feel like I win, so I’m happy when it goes up, and if I put some back in cash, I am happy when it goes down. As long as I’m right that it will eventually hit $3, then I can enjoy the rollercoaster.
To each his own. But if you’re going to watch it daily anyway, you might as well learn to trade it so you can understand what others are already doing. If you don’t look daily, then the worry won’t be there for the dips.
Each needs to find their own strategy to keep sanity.
Rightstuff the only time we will see a squeeze is with big volume where there are fewer shares at a low price to cover with. At low volume if someone has 100,000 shares for sale at $0.65 and it’s up 4% what would be your guess if you’re watching... basically you reason the price will go down so you bid lower to catch some shares from those who are just in and out.
Traders will take a $50 loss over a $400 loss by selling on signs of a downturn, then they might buy some on the up turn. Yesterday I sold 3000 shares at .645 and bought 3200 shares at .606. And if I play it with small shares on low volume better believe others with more to play with are doing it with thousands of shares. I make $160 on my trades and they make $10,000 on theirs.
It is possible to guess wrong (often) and if you sell a small bit before a run, it’s also okay because you hold a lot. If you’re right, you get more shares at a cheaper price. You do this daily and the 200 shares gained becomes 1000 per week, which becomes 50,000 per year, which at $2 is 100,000 more than I could get just by holding alone.
You can also do it wrong and miss out on 100,000... it’s just a way people play the market.
I do it for fun and learning. When I make mistakes I try to make up for them on other dips and spikes.
The shorting can just be selling, and yes normal borrowing and they have 1 day to cover. I am assuming that means if they short at .65 at 10 am then they have until 4pm the next day to cover.
But traders go in and out in 15 minutes a lot of times. Scraping off $500 where they can. Some are happy with a $100 trade. And they do that 20 times a day.
Pennies work that way just as the penny scalpers on Nasdaq stocks where they go by volume of trades and computer aided trading.
The market is fascinating to watch when I have time.
I like watching the per 10 second moves to guess when it loses steam or picks up steam.
This is really starting to feel as exciting as when we were at .03 struggling to get to $0.05... but the momentum was building as I saw more and more people switching from watching to buying. And I’m seeing it again. More posts of people entering and more long term holders increasing their position. Some swing trading to build up some cash and shares. But overall more people are coming and scooping up shares under 0.60 and with the target $1.05 price there are many who will try to buy what the shorts are borrowing and selling. And when they have to cover tomorrow, it will go up a little more. At this volume any new people who come and add will provide pressure on the cover over the next few weeks. The yield sign is used to justify the selling hoping to get in cheaper, but big pockets can show up at any time. After the first run 1000’s of people know about it, and they are waiting for the chart to signal full GO.
It’s coming.
Damn, maybe I should write articles and get paid. Haha
Regarding revenue, fiscal year ends 03/01/2022 which will include 1 quarter at the 50MM-60MM run rate they were reporting back then. They expect from May to May (12 months) to have 100MM the 100MM run rate did not start until June likely. And estimating 75MM is prudent without seeing Q1 numbers, which could be 12-16MM on the quarterly. And Q2 might be 20MM versus 25MM and Q3 might be 25MM etc which all are conservative guesses. I’m not that far off in my recent numbers, and those are conservative numbers.
But a great overall view article.
Aww man. Sorry to hear that. Yes way too young.
Hmm. What would support a $7 price. That’s an interesting question. $7 at 500MM shares for example is 3.5billion, correct? So a market cap of 3.5billion with a 20x multiple would be $175MM with a 10x multiple it would be 350MM and a 5x multiple would be 700MM.
A 20x multiple might happen on NASDAQ with big growth.
But I expect $350MM would get the hype needed. If it hit $7 it could hit $10 with the same revenue.
If we hit $350MM in 24 months yes we could see $7.
Just my opinion.
Great article. Notice that enphase has revenue about 1.2 billion with a market cap of 23bn and is considered a buy. That’s a 20x multiple. They expect continued growth. But the PE is currently 260!!!! Based on historical values.
If solar heats up and SIRC puts out the revenue we expect in quarterly reports, the price will not be this low next year. For any investors looking at long term stocks this one will be on the watch list and when reports hit, they will come.
Rightstuff, You’ll notice in the article that he also mentions that stock market price does not always follow valuations as it can act weird (my words).
The stock market price at any one time is just a snapshot of people and systems trying to make a buck. Investors look at trailing 12 months real data and compared to current price make a decision to either buy, sell or hold. The volatility of the market in the short term is always a factor of fear or hope. Speculation and comparative shopping.
Traders are always a factor with short term movement. And remember the current report shows 17MM revenue with 100% growth year over year (approximately).
If you do the math, 0.59 x 338MM shares is $199MM. 17.5MM / 199MM is a factor of 11.39... which is basically right in line. With expectations based on real revenue and growth.
We are speculating what prices will be in the future based on uncertainty and expectations of revenue, shares, growth, earnings and so forth. The current price is a “fair” value based on historical price, which is why many people started selling even at $2+ on the first run when price exceeded expectations in the short term.
People who are holding are long term investors looking at a multiple year investment. And those who got in at .10 are still up 500% and those who bought at $1.50 will likely be up 200% in time. Those who buy and hold long term just believe it is a good entry point. The only time to get out is when quarterly and yearly reports show concern for long term value. 50% growth year over year will cause the price to go up greatly over time. Quarter and years of time.
In that article, what I find very interesting is the value of high growth stocks and PE ratios match growth rates. So if a company grows EPS at 100% year over year they might expect a PE ratio of 100. That is pretty amazing to think about when you look at the top end of where sirc could go.
If they grow revenue, and margins, and have better synergies and backend, they might be growing EPS at 50-100% for a few years.
I like the graphics at the bottom. And also the details of how fast money doubles at specific growth rates. If you buy at a fair value and it grows at 20% the money doubles faster.
https://www.fastgraphs.com/blog/why-a-15-p-e-ratio-is-fair-value-for-most-companies/
The big thing I got from this article is just information about how long term investors and funds may look at company valuations. And why their (sirc) focus on organic growth is so important. 17MM to 100MM to 150MM to $300MM would be 3 amazing years.
If they got an EPS of .06 with a 100 PE that’s $6.00
Time will tell when the true investors start evaluating and what they come up with. But I like the variables in this equation of SIRC.
Here is the link to part 2 of the article. The starting premise is that a 15PE applies to most stable companies. You’ll notice in his writing how he shows that a fast growing company has a higher PE (or higher multiple if earnings are not available to use)
https://www.fastgraphs.com/blog/why-a-15-p-e-ratio-is-fair-value-for-most-companies/
What I like about both part 1 and part 2 is that he explains the reasons behind it and provide graphs as examples.
I’ve been digging through articles about valuations to understand why certain industries have different multiples. It is hard to compare individual stocks because one stock might be over hyped. But I found an article from a guy who’s been studying company valuations for years. And his points about margins explain some of the industry valuation differences. Grocery for instance is low margin. Software companies are higher margins. A software company who is growing fast can support higher PE and higher multiples depending on their position in the flow of time.
Since solar is a hot topic, it’s hard to do comparisons since many are on NASDAQ and there is some hype, which might be the high end of the range.
The concepts are what I’m trying to illustrate. If you provide examples of companies and we look at revenue, margins, growth rate, industry interest in the market, we might see some wild swings. Those stock prices are not company valuations. That is the market that is based on mood as much as anything.
Company valuation is about how much a larger company may be willing to pay for the revenue stream and earnings growth. If you have a company making money, and has an 8-10% margin, and you buy them for 1.5x revenue you can expect to get your money back in 7-10 years based on earnings. This is typical of what a company is willing to pay.
However, if the company is growing fast, with high margins you could get you money back much faster and would be willing to pay more.
Company valuations are not the same as companies that you might compare. I have not found a comparable company on OTC pink to do a company comparison.
The roofing industry has a fairly consistent profit margin. Companies who grow at a specific rate would be your comparison company, but the general approach is used across all companies and industries because of the types of variables that can be plugged in.
Let me see if I can find the article again.
He has compared 100s of companies in his research and provides graphs of their stock price history to show examples.
Brands also have a variable that is somewhat intangible. Debt and management decisions also factor in the higher or lower valuations compared to the raw numbers.
One to one company comparison is useful if you have a lot of similar sized and execution.
For instance, Lowe’s and The Home Depot are often compared. So who would you compare SIRC to? Is their space comparable?
I ran my own numbers on this again, comparing typical company valuations based on margins for the industry, growth rate, revenue and shares outstanding, using these values, margins of 30-40%, growth of 50% year over year, 350MM shares, i made my low end estimates for different revenues.
I’m estimating a multiple of 7x to 10x and posted my reasons on ST, but basically this is through a lot of research I’ve been doing on company valuations based on similar growth and margins.
For 100MM revenue, $2 to $2.85
For 125MM revenue, $2.50 to $3.57
For 150MM revenue, $3.00 to $4.28
The first number is 7x multiple, and the second is 10x. Both of these are very reasonable for a company growing at this rate and with the margins on the products and services they sell.
These should be solid by next May, but with any hype or investor demands, it could see these prices sooner.
Based on the reports, we will know if they are over or under. If growth rate is higher quarter after quarter, the multiple could be higher. If margins are better and they hit profits and positive cash flow, they will see these multiples again on the higher revenue numbers.
This feels very similar to when were telling people at .03-.06 to take a look and to research. We were at $5MM market cap with 20MM run rate. Which was only 17MM after 1 year. We are a bit higher in multiple, but not much. And when did it really take off? We had hit 30MM market cap on 138MM shares. So that would have been about .21 and that is almost where we are today. 30MM on 20MM or 175MM on 100MM. The run from .21 to .80 is what I expected.
Today I expect a run from .50 to $2 with $2 making some nervous enough to sell some. We hit .71 before and had a correction. It allowed several places to take profits and buy the dips for the run up to $3. I sold some early. But I also sold and bought again and sold and repeated.
.45 to .80 back to .55.... it is looking familiar.
And we need revenue numbers. Monthly record breaking revenue. We need an 8MM a month followed by a $10MM month followed by a quarterly report that shows great things.
When we get that it will be like all those who got in at .25 or less... and then everyone else trying to catch the train before the destination.
It is coming....
So true. It is a little frustrating when they don’t give it a thought. In my family most everyone is hard pressed for any type of money that can be risked, so I get it. But for the one who is interested, the risk factor is out of their comfort zone. I’m hoping those who I tell at the right time, get in and make some $$$ from it.
I told my sister at .51 the last time it hit it that now was the time. I told her at .45 it probably would not do lower, and if it did it would not for long. And anywhere around this price is a great price no matter how it moves. The support at .45 is huge I believe. I think that has also increased to .50.
.50 x 350MM is 175MM.
They will hit 100MM revenue and go past it. In the not too distant future they will be making $175MM run rate. And the growth and potential will carry this 7x multiple at the minimum. So if they get to $175MM run rate on 350MM shares, the potential for $3.50 becomes so very possible.
There is potential with some hype for this to hit 10x or even 20x with the right enthusiasm over something.
Supply chain worries at the moment may be weighing it down more at the moment.
If the right things come together either in the EV space or just pure numbers exceeding expectations, something will light a fire. As more people buy shares the float will get locked up again like before and then there will be a buying frenzy.
After it hits 20x revenue for market cap there will be some FOMO that will catch some off guard for the next correction. We can hope for low prices until uplisting and more revenue reports to give it that slingshot effect.
Do you really believe this will hit $1 this year? That’s a pretty good increase on .55, yet you say you are almost positive it will hit $1, right?
So how many family and friends have you told this week?
And if that number is 0, do you really believe? Or are you a bit scared. Maybe you did not tell because it might go down first... at some point, you have to tell others. I should see 14,700 posts on Twitter per day like I see for safemoon for gosh sakes. Tag those hashtags and make an account if you don’t have one and use #pennystock #invest #investing #microcap and talk about revenue, margins, business growth, etc.
If you won’t tell family, then tell strangers.
Over 400k shares now and can’t resist buying anything under .57 I don’t have time to watch it much today but I figure, if I buy another 15k today I can buy a little more if it dips. But at 400k shares today, I am so ready for a climb. I really hope to hold 300k shares until $3.... depending on how things feel for me at that time. If revenue exceeds expectations, CFO and uplisting happens, and they head towards net income and expanding into Texas, then holding is easier.
I’m glad to see others buying in the .56 to .58 range.
I agree they will exceed 100MM run rate by next February. I have a feeling by next May they will be doing 12MM per month minimum across all companies.
10MM per month consistently will turn heads. 2.5MM per week is 10MM per month... I think they could hit that in July and August.
I certainly hope the daily tweet was the beginning of some monthly numbers we might start seeing around time of uplist.
It feels like it is coming soon. Momentum is building.
Trip. They are messing with you. This is not moving up any time soon. This low volume mean a lot of people are sitting this out until they see more reports and yield is removed.
I was able to buy more shares today which surprised me as a yield normally blocks me.
I agree that the head fake was just that. Not sure the plan. Trying to shake the trees once last time? With the news of revenue coming so soon, they must be gearing up to let it fly.
Lots of other plays people are focused on. And every one watching their crypto go down and they are pissy.
I just need to hold enough until we hit $3 next year.
I need to stop watching daily.
Hope your family and life is better. It’s glad to have you back, commenting on the charts.
Oh if only we had a crystal ball right about now. The unfortunate thing is if the future is bad and this goes to 0... would you trust that and sell?
Many of us here likely believe it is just a matter of time and if they continue to sell and make profits and good decisions, this will be fine in the long term.
I guess the question is what scares you besides the CFO. What if they just ran the business like they have with their team, and continue to expand and make money. Would it not go up that way as well? There are many penny stocks that are successful and eventually uplist to QB without high power CFOs. And they can even reach $3 or more.
In this case, getting to NASDAQ with a qualified CFO could allow them to reach $5 and $10 over the 5 year window.
How many planned a 5 year hold on this one?
Haha. The best I could offer is a tip on a few other stocks to watch. But if I can hold a bunch of these until it reaches $5 who knows... I might be sending out some free NFTs to my friends here. I’m hoping for some Green Day’s but a dip like that can be scary.
I drew a trend line that makes it look like we’re at the new bottom, but who the hell knows. I’m just impressed by the chart comments trip makes. But I bought a lot at .615-.619 today. Now as long as it stays in the 60’s I’ll be good.
Bought 58k shares today.
Any article today looking at the yearly report is exactly the type of thing people expect. They look at the previous 12 months. They analyze gross margins and make assessments based on history. This is perfectly normal. Valuations are based on trailing 12 months.
This is why year over year quarterly reports are very important to read. It is also very important to factor in guidance which some want to ignore if they are accumulating and want others to sell.
However, I believe looking at the last report to see “current value” is typically how it is done.
This is why quarterly reports that show current revenue, margins, share counts, and expenses are so important to show improvements.
We also know people who research companies will set their own expectations based on reports, forward looking statements, and their understanding of the current market and industry.
So we’ve been told they were at a 50-60MM run rate months ago and expected to be 100MM by end of summer. So I’m making expectations based on those. If they come short, investors don’t like it and morale and interest goes down. If they exceed it SOME, then it’s a positive if there can be reasons why the estimates were off.
We expect margins to go up. Based on the discussion on the sales team and synergies.
Each quarterly report will create new expectations and new adjustments in our trust in forward looking statements.
High growth organically is very important to see.
We will hit a 7-10x revenue multiple for market cap will be normal for a healthy industry with a 25% margin with 50% organic growth.
Also, the revenue is generally the previous 12 months. So a 10MM quarterly report for Q1 added to last three quarters of the previous year is About 25MM. So in that view we are trading at 9.46x revenue. Which might be considered in range. With each quarterly report the previous 12 months of revenue will increase towards the run rate. But will not be 100MM until next year.
10x 100MM is 1Bn and divided by 338MM is $2.95. That should be seen as a one year target.
This would be based on no surprises, meeting or exceeding expectations, no change to growth, and no industry issues like lack of supplies.
Given all these things I think we are currently priced fairly with growth heading to $2.95 in the next 12 months.
The problem with guessing exact price by some future time, is that the future has unpredictable factors on the top side and bottom side. I think it is important to learn how other investors who do not have anything invested in this company view the value of it today.
Talk to people who know how to value companies. Read articles on what they look at as the factors that add value and variables that subtract value. Read about how long term investments are planned in funds and with people who are looking for a company to buy and hold for years.
When I talk to people they are looking at options as a major way to “play” the market swings. For long term investment they look for those they can buy and forget for 5-10 years. Believing that a return of 400% in 5 years is amazing. 100% in two years is amazing. And they go in buy dollar cost averaging when they think it is a good value and will fluctuate as they wait for real numbers to come in.
When numbers confirm the abilities of the company to grow steady organically, they will add to their position and if they get 50% a year they are thrilled with the investment.
Financial advisors who get 35% growth in 1 year on a portfolio see that as very successful.
Penny flippers who make $1000 on a 1 day trade are exciting with their entry and exit.
This stock attracts both currently.
We have short term traders, we have short term investors and we have long term investors, and there are shorters.
The shorters will reduce as quarterly reports reflect the current value with expectations of growth. When the price goes over expectations, shorts will increase. After a fast surge up.
I would prefer small dips and small increases even a positive growth or 1% a week. I would rather see that so that company growth creates more support. Be okay that it may take 4 months to reach $1, in fact, wish for that. So that when hype comes it is because the numbers cause excitement that any investor would like.
That would allow the $1 to grow to $2 and not have the enthusiasm reduce as growth will support the price growth. If we hit $3 fast, it will dip again.
What we want to see is profit to exceed G&A and salaries and those expenses that need to be covered by revenue.
I like low G&A, but the salaries are high enough they know they need more than the 20% profit margins to make the 100MM pay the bills, pay the debt, and allow growth.
At .10 a share they had an expensive cash raise. But got good money at $3 per share.
What we need to see in coming reports are profits getting really close to expenses not related to acquisitions costs. But covering the normal operations costs.
This is why they need efficiency to build that 20% to 30% or higher margins.
Very eager to see them report 8MM profit on a quarterly report.
When they do that this year, we have arrived!
I often time it wrong, and I generally compare against my own trades. If I buy 10k at .55 then I sell on a spike over .55 and I buy back only on a dip below.
When it is running I sell even more, so some that I sell I never buy back. But I sell others that are higher. But this can only be done because I buy a lot of dips, and sometimes I get stuck for months or years if it keeps going down. I’ve gotten really bad results doing it wrong.
It’s sometimes very hard to catch dips and spikes and I do a lot of waiting for the right times to spend some time watching. It is too time consuming for sure, and sometimes I do it while waiting in the car or on a conference call.
But I agree. It’s not the easiest to implement without extra time on the computer.
I bought 7500 back this morning.
I trade 20,000 shares in and out. Mostly to put cash back since I put in nearly 60% of my funds into this.
I’m one of those profit takers with my 20k shares. I do this just for the fun of playing the market and picking up 10% where I can on at least some of the shares. Prepping for dips. I’m still holding 300k shares which is the high side of my investment ever.
I don’t always sell a spike, but when I have 0 cash, I will sell spikes for the previous “over buying” I did on a dip.
I’m supposed to only have 25% of my funds in stock and I’m at 75% hoping for a steady move up with all their growth coming.
I also sell some because if it goes up, I’m happy. And if it dips, I’m happy as long as I know that long term it will go up.
As it climbs, I will sell some to put back the cash I “borrowed” for the .45 dip and previous.70 dip from .90 on the way down.
I could just hold it all, but buying dips and selling spikes is just a pastime for me as I am sure it is to others. So don’t be surprised when there are short term profit taking for those who are long term supporters.
By selling spikes and buying dips I’ve been able to go from 186,000 shares at $9,000 initial investment to 300k shares and $250,000 invested. If I can hold 300,000 shares until $3 I will hit my first $1 million ever in my life.
It will be scary for me to hold $900k in one stock at one time, so I’ll be honest, the 300K will likely dip to 150k at $2 with hopes of dips and spikes to help me reach that same number with balanced risk.
This is only my opinion and strategy. A combo long term and short term playing.
So, basically this is to explain volatility on spikes. 25% in one day is a spike. And 50% in 3days is a really nice spike. Some traders are going in and out with 50k shares. And 50% is a great 3 day win. This is why I like 1% gains per day as a general guide that more people are coming in buying than those leaving by selling.
Many traders are in and out in less than 1 hour. Huge bids can be from a trader riding a 15 minute window. And those buys become sells just as quickly. That is the nature of penny stocks. And always will be. And this is why watching daily is nerve racking.
GLTA
The awesome thing about the announcement of the closing of future home, is alone they may ramp up to 100MM revenue run rate by end of year. And I expect 50MM from the rest of the company by that time. So a quarterly report mid next year should show 35MM for the quarter. There will be no stopping $3 after they post that type of number.
Organic growth of 50% and margins of 35% and higher are great numbers for larger multiple and P/E once they post earnings. With growing by acquisitions they will have expenses that go against margins, and likely we will need to use revenue multiples instead of P/E ratios. As expected P/E increases so does revenue multiple especially on high margins companies.
Do research on company valuations and you’ll see that a 50% organic growth is a 50P/E expectation. With margins of 40% as long as G&A are not crazy gives a 7–10 revenue multiple for market cap.
If they acquire companies and get more out of them because of synergies, then they can have 50% growth same year after acquisition.
If they can keep shares below 400MM and can grow revenue to 200MM we will hit $3.50 conservatively. We hit a multiple of 26x on the first run. A bit over bought. But this next time $3 will not be over bought.
The good part of Nasdaq in 1.5 years is they are not rushing and likely will not consider a RS to get there, but rather solid growth over time and showing revenue. I like that. We could also consider the goal is to have a solid $3 price so that uplist is really permanent and will grow once it gets there with their track record