Post by
Mazz45 on Nov 19, 2020 6:17pm
Market Cap - very undervalued
Relistened to the Webcast from yesterday. One key item that Paul mentioned was that other companies in their space trade at 4 to 5 times forward revenue.
Let's look at that a little closer. In 2019, Kontrol made 14.5M in revenue or at 5 times, a ~$72.5M market cap based on the industry. Now this is past and not forward revenue.
Fair to say, based on where we are trading today, market is predicting $0 for biocloud let alone forward revenue in 2021 despite Kontrol rying to integrate 100 more buildings into their platform at about 100K each of annual recurring revenue or potential to add $10M of incremental annual revenue. But let's ignore that for now.
Now to be very conservative numbers, let's say they sell only a meeasly 500 biocloud units a month and let's say they sell at 10K CAD, not 12K USD... that's $5M per month in revenue or $60M over 12 months plus the core business. At 4-5X, that's a 300-400M market cap.
All this to say... sheesh... we are SO undervalued here its crazy. Even if BioCloud is a total bust (unlikely) and there are $0 in sales which is also highly unlikely IMO... we are in the range of fair value at current prices.
Hellova buying opportunity. That's how I see it. Good luck all !!
Comment by
Gunsmoke on Nov 19, 2020 6:46pm
Good post, as the gazoos on the site babble constantly with little thought and adding no value, it's refreshing to read a post that actually looks past a 5 minute time window and evaluates the opportunity from fact versus ignorance.
Comment by
LivingTheDream1 on Nov 19, 2020 7:07pm
Agree! Anxiously awaiting news of the first sale. Should be a wave of announcements after that. LTD1