RE:RE:RE:RE:RE:RE:RE:GO STC Go!
Captain71 wrote: It’s also frustrating listening to the analyst say there is lots of upside potential now in tech. Unfortunately they specifically say they are only interested in companies that are increasing revenue and are profitable as well.
I realize plenty of folks here feel that is not important but many analysts feel differently (that is 2 in just the last 2 days on BNN).
I honestly hope Wignall and company can modify their spending and show a profit here soon to get some big players interested and buying in.
GLTA
Here we go again :)
As mentioned before by others on here, the most important thing to look at is free cash flow left to equity holders. Forget about what the analysts say about net income. As an example, Acuityads has never been more profitable (net income profitable) than in the last 12 months and it's share price has pummeled around 90% from its high in February of 2021.
I will leave you with one last example to drive my point clear.
Suppose you buy a commercial property for $1m to operate your fast food business. About $500k is land value and the other half is building value. The building gets depreciated over 40 years and so incurs a charge of $12.5k/ year. In your first year of operation after you pay employees and other operating costs, you have $10k left in cash. The accountant decides to include a non cash operating expense of $12.5k for the depreciation of the building. After these expenses are incurred your operating profit will show up as negative even though you made $10k in cash before taxes.
Operating profit = $10k -$12.5k = - $2.5k
Sangoma is on pace to achieve US $30m in free cash flow and so is currently trading below 10 times free cash flow.