RE:RE:Record Sales of Cellular Booster in August up 73% YOYcandykid wrote: One of these days this stock is going to get noticed and will shoot up to about 1.50 . Anybody know when that might happen. They just keep releasing good to great news.
A good first step will be to report an income statement where revenues exceed expenses.
As reported on Sedar, first 6 months of revenue is $10,072,815 with gross margin of 27.09% .... so monies generated before all General & Administation Expenses was $2,728,725
Their G & A expenses for 6 month period including Fx and Financing charges was $2,775,063. So pretty close to even from an operations standpoint.
There was an additional $507,971 loss reported because of IFRS reporting protocol. This loss has to do with the changing final purchase price of Signify based on the conditions of the deal and the payment terms (See Note 5 & 10 for details)
What does this all mean in standard old farmer lingo???
At average gross margins of 26%, Siyata needs at least $20 Million in sales to just break even! They are projected to get there this year, but need continued momentum of sales. The most recent news release suggests they are working towards their $20 M projection for fiscal year 2017 (from the CEO himself)
Next, there is a boatload of warrants to be exercised (27+ Million), all with exercise prices at $0.50 and $0.60. The main one to look for on next financial release is the 6,386,000 million warrants at $0.60 that were set to expire July 23, 2017. IMO, management released timely news releases (no coincidence here) to ensure shareprice stayed above $0.60 so all these warrants got exercised. Management warned this cash and they desperately needed it. At the end of June, the float was getting low due to increases in inventory (smart!). The remaining 20,900,000 warrants are all at $0.50.... IMO, this is what is also contributing to keeping shareprice down. These warrants have been in the money for over 3+ months. The positive in this ... the company will be well funded with cash going forward until they become cash flow positive! The negative in this ... Dilution!
Lastly, there are also close to 9 Million options for employees, directors and agents at an average price of $0.35
So a good portion of those warrant and option holders wanting profits can hit "sell" at anytime and put some downward pressure on the stock.
When it's all said and done, there could be close to 120 Million shares (Good for liquidity)...
Now to my projections....
My Guesstimation... Need $5,000,000 net profit to earn $0.04 EPS.... To do this, company needs approx $26 Million in Gross sales. At 25X Earnings, this equates to share price of $1.00
To be conservative, I am thinking more like $30 Million in gross sales to achieve shareprice of $1.12 ($0.075 EPS at 15X earnings). The CEO is on record for $30 Million in sales as a 2018 fiscal year target.
So here is the question for current shareholders and possible new ones (looking to buy)...
If you bought today at $0.60... Would you be happy with a 2X bagger ($1.20) around Xmas 2018? I know I would take that!
Like all Venture stocks, management needs to follow through with execution of their plan for it to work. What I like about SIM is that it is nice and boring... CEO is very realistic with expectations and is building the company slowly and right.
Disclosure.... I am long SIM, and adding to my position at prices below $0.60 if available (and if I have cash available)
Good Luck All
FI4