RE:Watch out, valuation is getting stretchedSujanstockpicks wrote: At 0.34, BeWhere trades at a p/s multiple of 15, assuming they will reach $1M sales this year (and this is a big if). I know IoT is a very hot industry, but the valuation is getting stretched here. Remember that Memex had a big run-up and then lost a good portion of its value, same could happen here too. Not advising anything, just a reality check.
I don't think it's a big if considering the recent PR with Geotab and all the other resellers they have. They are now fully integrated into GeoTab's platform (i.e. customers can now see their beacons directly in their Geotab account along with their GPS units without having to click another button) and is now out of beta. That means the beacons are now open to all end users and both companies are bringing each other lots of business.
The company has only been operational since 2015 and already in their first year they managed to do ~$100k in revenue, that's including the development time of the product. For 2016, they will do at least $1M in my opinion for the aforementioned reason. Based on this growth curve, 2017 should be very exciting. Also, one large deal could change everything. Clearly, astute investors which have been buying up the stock in large quantities recently are aware of the merits of the product and the growth potential. It's not everyday you get to invest in a start-up that is this de-risked: the distributionc channel is already well built (something that takes years for new businesses usually and costs lots of money), the product is much cheaper and superior than RFID, insider ownership is 60+%, the company doesn't burn lots of cash and should be cash flow positive soon, there is recurring revenue from the monthly service and from the need of re-ordering beacons every 5 years after the batteries run out, etc.