PCT Ltd (PCTL)

[skitahoe]

The question that needs to be asked is, has the company demonstrated that the share growth has been used to grow the company. I believe if you look at the company today, the answer is clear. I cannot think of a faster growing company anywhere, but it takes time to get the revenue figures.

I've often argued that market cap, not share price, should be what qualifies companies to be on a given exchange, that's not the case, but it's rare that a radical reverse split works to achieve a listing on a higher exchange. Certainly it will take awhile to reach the Nasdaq with 600 million shares outstanding, but when we do, we'll have a $2.4 billion market cap. While it's doubtful this year, I like the odds of it doing it by next year.

A $2.4 billion market cap would require $240 million in earnings based on a P/E of 10, or $80 million on a P/E of 30, while I suspect that with the growth we'll see in PCTL it can justify the P/E of 30, nothing is ever certain. The question might be, is there anyone here that doesn't believe that by the end of next year PCTL won't have earned $80 million for the year. I wouldn't be surprised if the U.K. proceeds alone could be that big or bigger for next year. I suspect that with the growth of fluid sales, they could reach that level as well. Finally I believe the growth in the equipment they're selling, or leasing outside the U.K. deal could grow to that level in the next year. In short, if I'm right, the company could meet the $2.4 billion market cap if I'm right about all three above, so we'd make the $4 Nasdaq requirement on a P/E of 10, but of course if the P/E was 30, we'd have a share price of $12, it's all in the realm of possibilities.

Right now, there is a worldwide desire to get back to where we were before coronavirus. We might never get back to precisely the same place, but I believe whatever we get to, there will be a far greater emphasis on sanitary practices when we do. I believe PCTL is ideally position to help in that area, and it will prove very profitable for them, and at the same time make the world safer to live in.

Gary