GREY:SMDWF - Post by User
Post by
CDJ9292on Dec 30, 2015 11:32am
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Post# 24419264
Risk vs Reward
Risk vs RewardSince the activity has died down on this board I figured I would throw some numbers around to get an idea of other shareholders thoughts/opinions.
Ok so its not a surprise everyone is dissapointed with the current share price but I took another look at some key numbers this afternoon and this is what I came up with -
The new Revenue Preformance Managment System seems to be working quite well and has led managment to forcast 10MM in sales/revenue by year end 2016, which is actually lower than the 11MM forcasted by UBIKA (see link below) I will use 10MM for my math.
VID has a burn rate of just over 4.5MM at the end of 9 months Q3 2015. Using 6MM as an annual rate, if all else stays equal, that leaves them with 4MM net profit by fiscal year end 2016. Current shares outstanding are 77,188,080. This would leave the company with an EPS of 0.05 or, if you use the fully diluted share count of 112,128,259 an EPS of 0.035
Using a modest 10X multiple for P/E this leaves you with a 0.50 share price or 0.35 by the end of 2016. Being a stock that is traded on the Venture Exchange, I would assume sharholders have a pretty high risk tolerance. My conclusion would be that the risk is worth the reward.
Full disclosure I have been acquiring shares for the past 3 months at sub 0.10 levels.
UBIKA report - https://smallcappower.com/wp-content/uploads/cloud.modyocdn.com/uploads/352b4e70611b11e5a50b1312f2579f85/original/VidWrx_Full_Report_-_September_2015_.pdf
IMHO