Potential price target based on financialsBeen reviewing last qtr's financial I looked deeper noting that the net income was from unrealized gains. So I had to think harder about what that means to me and this specific stock. Cypherpunk being primarily a Holding company business I would think that their focus is to increase value via unrealized gains. Then my concern is can they duplicate or improve on last quarter's gains for future qtrs? Based on what BITCOIN has done and likely will do I would say yes they can and likely show even greater gains than last qtr. SO that is good. Also they tell me they are wanting to move from Holdings only to also revenue producing investment. So if we use this info and speculate what a full year net income would be and do a PE x 15 formula what share price target is reasonable. I see on Fidelity the ave PE multiplier for this category is 20 so I will use 15x to be more conservative.
Calculation below in Canadian Dollars:
$.06 Last qtr net income/share and speculate they can duplicate that for remaining qtrs
thus
$.24 EPS for a year That will result in 12mo target of
$3.6 = $.24 x 15 PE
So even if that is cut in half buying this at $.33 price looks very promising.