RE:Price in 5 years?
phillip44 wrote:
I'm a firm believer in Ackroo's long term prospects, but I'd like the opinion of those smarter than me (ace1mccoy, Torontojay, retiredcf, and everyone else on this board!) Assuming Ackroo grows at a consistent rate, not parabolic, where do you see the price in 5 years time ? Furthermore I noticed 2 months ago insider ownership was 70% (source: Yahoo finance) currently it's just under 50%. Was this due to warrants exercised? Thanks in advance, Phil
It is difficult to determine the value of this company 5 years out as they are a serial acquirer and so one would need to know how much share dilution there will be over the next 5 years as well. For instance, if they add another 200 million shares and they can get their revenue up to $60m, then you just need to assign a fair price to sales multiple divided by the total number of shares.
As an example, if the market assigns a 15 times multiple to sales and they have approximately 300 million shares, then that would equate to 60*15/300 =~ $3/share
By the way, The Ceo has hinted that he believes the company can conservatively achieve $60m in sales over the next 5 years.