RE:rationales to buy at $4
mingzhu wrote: PE 0.23 - FX 0.03= 0.20 times typical 20x multiples= $4. 100m cash/60m shares =$1.30.That puts AT fair value at $5.30. i think some smart longs are actually selling now anf buying back after 30 days.I expect AT will stablized later in Dec and back up in Jan 2022 to $5.30s.That is best AT can do in this bearish sentiment.
I already passed my 30 days as of Nov 5th. I was lucky on the timing but most of my shares are in tfsa accounts.
As long as the company is cash flow positive and with a huge cash balance they cannot go bankrupt. They are trading with the expectation of very little growth going forward even though "real" revenue increased over 11% in Q3. Fiscal 2021 will likely show revenue growth of 15- 25% for the year.
The volume is stabilizing which is good to see and Q4 could very well surprise us if they land a $10 m contract.
This is one of the best opportunities to invest in this company. It reminds me of the opportunity in early 2020 when you could have purchased shares below its gross profit! Never mind trading below sales.
Acuityads is trading with an enterprise value to adjusted ebitda of just under 10 and enterprise value to gross profit of just approximately 3.39!!! This is just insane.
Find me one other advertising company with these metrics and I'll buy that company too.