I thought it might help to explain my hope in this company by presenting it from a long term perspective, through a "what if" scenario. Of course anything is possible, But let's say in 1 1/2 to 2 years SFIO meets it's $100 million per year revenue goal and let's say maintains a 20% profit margin.
That revenue along with audited financials and appropriate paperwork would meet the minimum requirement to uplist to NASDAQ. Given it's possible some type of reverse split maybe necessary at that point, let's for now look at this based on current pricing to outstanding shares.
I realized it is frustrating to see the price so low and only now inching up slowly. But a lot of that is still due to general concerns about being in the OTC pinks and lack of recognition.
I can't think of any stock that once it hits the NASDAQ for the 1st time, it doesn't immediately start trading at LEAST at a minimum of that markets Average PS or PE ratio. When doing any comparison with OTC stocks, the Price to Sales is usually used because many if not most of the company's don't even have a net profit yet. But since we're assuming SFIO will be profitable it would be better served to use the Price to Earnings ratio Which is usually seen as a better indicator.
The current NASDAQ 100 average PE ratio is 22.27. Assuming a 20% profit margin that means SFIO will be making $20 million a year. That means SFIO market cap should be trading at around $450 million. Assuming the number of outstanding shares doesn't significantly increase ( If they follow through With their preferred share swap, the number of outstanding shares will actually be reduced) that puts a realistic price per share In the 30 cent range.
Using A PS ratio that would be even higher, And also keep in mind that this ratio is an average for Established NASDAQ stocks. New entries can easily trade at double that price. But for now I'm trying to keep this analysis completely realistic.
I can't speak for anybody else, But especially given the current Sentiment and price dropping in the otc..... I'm willing to wait for up to a couple years for what would be an almost 20 bagger from current price!! Do your own analysis, make your own choices ... But that's what I'm betting on. (Yes, all OTC investments are "bets")
