FundamentalsObviously, not many here are happy with the progress of the business. A fair amount of anger has been expressed. I get it, but I did want to make a point about fundamentals. (Note: for the following, I've used the price on the day of each earnings release, the revenue as supplied by the company in a couple of MD&As, annualized quarterly results and the basic share count.)
When Q1 f2021 results were announced, the price/revenue multiple was about $0.265 stock price / ($170k rev x 4 Qs / 143,119 sh) = 55.8
When Q1 f2022 results were announced, the price/revenue multiple was about $1.25 stock price / ($1,608k rev x 4 Qs / 176,634 sh) = 34.3
When Q1 f2023 results were announced, the price/revenue multiple was about $0.69 stock price / ($3,472k rev x 4 Qs / 189,356 sh) = 9.4
Since the price is currently $0.51, the current price/revenue multiple is about $0.51 stock price / ($3,472k rev x 4 Qs / 189,356 sh) = 7.0
One can see that this fundamental metric has been improving over the years and I would think this is generally normal as a company transitions from being a start up to a more viable entity. In fact, the last two price/revenue numbers look quite reasonable to me.
Now, I do recognize we're all waiting for improvements in revenue, compliance, adherence and collections, plus some actual profit but, in the meantime, we should acknowledge that there has been some material progress.
I continue to see cause for optimism, especially given the recent emphasis on producing results from contracts already signed, as well as the newer and probably more reliable skilled nursing facilities niche. Hopefully, we'll soon see the traction we're looking for. If not, there's not much use in complaining and there is utility in seeking out alternative investments.