*Donville Kent Exponential Growth Thesis for Adcore*
According to Donville Kent in the ROE Report, "Exponential growth, which we usually refer to as compound growth, is very deceptive. Compounders as stocks [i.e., stocks that double, and keep doubling, aka multi-baggers] are routinely undervalued because most investors only look ahead to the next 1-2 years." Donville Kent (a hedge fund that specializes in small cap tech stocks) argues that Adcore is a rapidly growing small cap technology stock that the average short-term focused investor will likely miss out on when the company hits their exponential growth stage (exponential growth comes after 'being at the knee of the curve' - DK states that we're currently at the knee of the curve stage and that most people will not recognize this). Thus, if you're willing to hold your investment then this is the time to load up as much possible before the share price really starts to take off in a few more quarters.
Here are their projections. They're stating very clearly that investors should get in early and enjoy the ride over the next few years because when it takes off it will grow very quickly and if you're on the sidelines you will likely miss out. This is why I am in big now and will keep accumulating as this grows into a 10 bagger in the next 2-3 years and potentially more over the next 3-7 years.
Adcore Revenues ($M) - Exponential Growth Projections (DK Roe Report)
2019 - 15M [joined the TSX.V]
2020 - 22.8M [*Knew of the Curve beginning]
2021 - 54M(E) [*Knee of the Curve forming but not yet fully realized by investors] [just joined TSX]
2022- 67.5M(E) [*Exponential Growth starts kicking in and new investors start flooding in]
2023 - 81M(E) [*Exponential Growth]
2024 - 95.6M(E) [*Exponential Growth]
2025 - 112.8M(E) [*Exponential Growth Continues]
In other words, revenue is expected to grow exponentially over the next 4.5 years and with it a lot of future profit (and compounding of share price). However, this exponential growth spike will only start to be noticed by average retail investors in 1-2 years - this is why it's good to buy as much as you can NOW and hold for at least a year or two, ideally until 2025 and beyond.
The current growth pattern of Adcore is very much in line with the thesis put forth by Donville Kent and thus I will continue to add to my position as this is going to double many times over the next few years.
One last thing: I find it helpful to see each quarter as part of the bigger growth story (DK thesis outlined above) rather than in isolation. When viewing it this way you can more easily see that Adcore is definitely presenting a nice opportunity right now for long term investors as we are slowly starting to move out of the knew of the curve phase into the beginning stages of exponential growth.
:) GLTA :)