OTCQB:HDSLF - Post by User
Post by
prokofievon Dec 06, 2017 8:39am
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Post# 27099111
Math Matters...
Math Matters... No reason to be super excited about some meaningless LOIs, as they are not even for contracts that will bring revenues, but for a potential development of an newly conceptualized solution for customers that do not even exist... And it probably is completely random *cough* that it has to do with the two major bubbles in the Canadian market (1) marijuana stocks (2) blockchain. If none of you can see past this red flag you deserve to lose your money.
As my title mentions, MATH MATTERS. Assuming the new products are (1) developed in a timely fashion (2) key customers are signed (3) and it gets some traction in the market and revenue growth accelerates, I could see this stock trading closer to 3-5x EV/Revenues. Again, I am looking for an annual recurring high margin revenues, not one time contracts.
Assuming they can double the annual revenue (a stretch... and clearly not a conservative scenario), we get to an EV of $12-$20M, implying a $0.11-$0.19 share price. A plausible scenario of revenues being up 50% over some period and the stock re-rating at 4x EV/revenue would yield a $0.11 share price.
Again, good luck making money from here.
Prokofiev