Verus International Inc (VRUS)

[Renegades17]

Big catalyst is when they announce larger funding

They need to secure a working capital based revolver to really deliver on the backlog. That's the announcement that the market is waiting for to properly value the stock.

On the positive side, just based on the $20mm revenue guidance, the stock is only trading at ~0.4x sales, so that's dirt cheap. Given the expected growth rate over the next 3-5 years, it should trade closer to 1.5-2x sales, which would put the stock between $0.02-$0.025. It's possible for them to deliver a lot more than $20mm in revenue in FY 19, but we have no visibility on how that can happen- yet.

Anshu needs to fix the capital structure...it's what's holding the stock back and he did a poor job of managing that.