RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Revenue Calculations I have more than a half a million shares of Venzee. I'm just being realistic and I want to show the other side and the lofty targets. Clearly you're not - who is pumping this hard.
I don't want the share price to get ahead of the results because if they don't deliver, that's the death of this company. I mean that. If this stock reflexes back under the strike prices of the warrants/options and they don't have the cash flow to maintain (which they don't at the moment), they'll raise more equity and dilute further.
If you take their Q1 mesh connector number and their Q4 2020 "goal," say they're at 850 connections right now.
850 * $250 * 1.25(CAD) * 12 (months) * 11 (sales multiple) / 293,652,000 (diluted share count) =
12 cents/share.
That's a reasonable valuation because I'm using a forward ARR number. Right now it's trading at a 20 times sales multiple - which is, I would say, the high-end of the range.
But if you're in for the long run please stop pumping. Pump it when it hits 13,500 mesh connectors (whether that be in Q4 of 2022 or in 2024), not when it only has maybe 850. At 13,500 connectors, it'll be cash flow positive and profitable and severely de-risked.