Replies to post #10251 on Value Microcaps Zip Code Changers

[dr_airtime]

SIM.V - I bought for first time in morning. Thoughts...

...they spun this PR really well. Q2-16 had 2.0M of sales while Q2-15 had 2.8M of sales so Q2-16 could have been artificially low due to timing.

I note the following:

Revenue 9 months YTD 2016: 4.7M (Q2 FS) + 3.6M (press release) = 8.3M
Revenue 9 months YTD 2015: 7.2M

YoY Increase is $1.1M or 15%. Market wants to see higher growth than that. Combination of this and low Q2-16 is probably reason for retracement - and also opportunity for new buyers!

2015 revenues were $9.9M. Based on my above observations they are tracking for roughly $11.4M of 2016 revenues (15% growth). I don't think it is fair to annualize the record Q3-16 revenues.

Basic MC @ 0.27 is 18.7M (69.2M shares). FD MC is 24.7M (91.4M shares). I triple checked that this morning in SEDAR.

Current Price to Sales based on 2016 revenues then is 1.6X Basic and 2.1X Fully Diluted. Pretty Cheap.

If they show over $4M in revenues in Q4 then market should start thinking $16M annualized and potential for $20M in 2017 in which case we shouldn't see these low prices again.

Additional point - last Private Placement was at 0.35 from June and became free trading on October 11th but I doubt anyone from that will sell. You can buy below last PP, but they'll likely need additional funding in next 6 months. Working Capital was $5.5M at June 30, 2016 post-PP but that only included 950k cash.

All amounts above in $CAD eh!