TSXV:RHT.H - Post by User
Post by
Aei773ouon Jan 07, 2021 12:31pm
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Post# 32242784
Too many assumptions and lack of reliable data to call
Too many assumptions and lack of reliable data to callFor clarity to all and not meant to be blunt - Isfca has applied the traditional valuation method for a value stock to apply to a potentially high growth stock. That is not appropriate. And then he always put out his calculations with no mention of his assumptions and the reliability of the source of his data used.
At this stage the growth rate is everybody’s guess and most likely is the case for a long period of time . Thus Valuation based on the fundamentals method to make a call on this sp has no meaning. Because, for example, PE ratio applies when a company has established an earning power, a regular and expected stream of income and stable growth rates. Reliq is not here yet, and at most, the coming fiscal Q2 by March may provide some useful data to inspire. According to the last several financials and using Iscfa’s methology, the sp should be well below 0.20. The market definitely think otherwise currently and one missing out buying @ 0.225 and ride to 0.55 before the pullback lately.