I'm buying now as well. I ran the figures since the pullback and the valuation is now at ~$65million. With a conservative estimate of $24million in sales for 2018 they are only trading at 2.7x their 2018 rev numbers. That conservative estimate is if they stayed flat in Q4, which I honestly believe we will see an increase due to the 400 extra retail clients they added. So if there is an increase in the Q4 revs then we are trading at an even lower multiple.
Based on the charts the volume still looks healthy for consolidation. The bull volume days are much larger and the bear volume throughout consolidation has been decreasing. This ran off of the valuation becoming to low and I feel that we were approaching that once again so reentry looked really appealing here. I exited looking for healthy chart action and we have had that this whole time. I am now back to buying up shares. The reason being is because the chart looks very nice, low valuation with this pps once again, court date on Monday that I believe will have a positive effect on the pps, and the rev numbers that we will hear about should only take this to a much higher price point.
Fair value of this stock is .50 if you give them the industry standard of a 10x multiple. If they were fully diluted as some claim, worst case scenario this is worth .25 as a base from their previous performance (again on conservative numbers). You can't go wrong buying down here.
Trust charts because charts do not lie
