TSXV:MCLD.H - Post by User
Comment by
CanadaCoinon Nov 16, 2019 7:52am
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Post# 30359724
RE:More dilution coming
RE:More dilution comingDukeDilligence wrote: $75 million MC is way too high for the revenue reported.... This is only a buy under .30
I could not disagree more!
Our friend Duke needs to understand that stocks trade on projected financials, one year forward [at least]. And we are blessed to have just been given 2020 guidance by mCloud for $70 to $80 million in Revenues and Income of up to $14 million. One could apply a common 3 or 4X ratio to Sales and get a valuation of $262 million....or $1.64/share. Or perhaps a conservative Price to Earnings multiple of 20X and get a valuation of $280 million, but lets really be conservative here....even though this is a fast growing high tech company, with great margins, in a hot and sexy market sector, without any new aquisitions.....and apply a Price to Sales ratio of 2, and Price to Earnings ratio of just 11.
And we still arrive at a Valuation of $140 million, which equates to a share price target of $0.90. A far cry from Duke's thirty cents. :)