Lots of forward looking statements about torches,plasma and the like
The question is -Will the real shake and bake/torch be coming soon
In a globe article yesterday there is an very relevant for examining article to PYR IMO
PYR based on what we have heard about the failure to obtain financing, and also in terms of valuation.
To the point
In the globe article that deals with Canada’s tech sector “survival-of-the-fittest” part of the cycle.
Many startups won’t make it the author notes
“After an 18-month slump that has seen tech companies cut more than 360,000 jobs globally and slash costs to preserve cash, the tech sector is entering the survival-of-the-fittest part of the cycle. The grim news is likely to get grimmer for some time. Many startups won’t make it. The failure of SVB (which is now owned by First Citizens Bank) hasn’t helped.”
“And this is just the start of the Great Tech Shakeout. The next year will be a death zone for many young companies as “you’ll see a bunch of businesses shut down or sold for next to nothing,” says Chad Bayne, co-chair of Osler, Hoskin & Harcourt LLP’s emerging and high-growth companies practice.”
https://www.theglobeandmail.com/business/article-canada-tech-startups-layoffs-downturn/
The chart in the article which plots the Valuations as a multiple of estimated revenue over next 12 months is fascinating. It shows that at the low it was for the median around five times, peaked at around 15, and now it’s below five.
If full year revenue is about 19 million, that puts the current value based on the current multiple, in the article, which is below five right about where we are.
The catch is, that most tech companies are showing increasing revenues going forward, and adjustments would need to be made for the death, and the ability to obtain financing in the liquidity risk
If you read the most recent annuals, the indicate that they will not give guidance on the future and that there is it going concern, if I understand it
So I think the market has it right, and I let Sales come in we can expect for the decline, unless of course there’s liquidity crunch, and then all bets are off
all imo
do your own Due diligence and get real advice before investing or not
hey-I did my due diligence and I will watch this sucker from the sidelines