Post by
Makinga$ on Dec 03, 2020 12:46pm
What I find interesting....
There are only a few of us left on this board from the old days - I have been around since 2004, when Outhwaide came around and did a reorganization of the company, spun off Yoho Resources, and then relaunched this company at $.25 cents per share. Today ending 2020 we are at the equivilant of $.215 cents per share.
There is a lot of merit in what Italiano is saying. Pare is crooked - period. The Board is ineffective - period. The management team is too large for a company this size - period. The share price is a disasster for us long term shareholders - period. The use of funds raise has been very challenging to say the least - (more can be said here so feel free to add any comments you think of!) The promises made have been universally broken - period.
With all of that out of the way - we have to acknowledge that if we are here then we are looking forward and not backward. If we wish to cut bait and run, then do so. Staying here implies that you have done the assessment and come to the conclusion that your investment here is better than somewhere else! So let's ask why?
Well for one thing, there is a sustained growth in revenue (regardless of how they do it...though organic growth seems to be hard to come by with this crew of misfits!) The company is well capitalized now - something that the crew could conceivably f*@k up however let's assume they won't this time. Operating income is looking very good (EBITDA.) Finally, and what I think most people have not perked up to - a TSX Listing this fall or early next year, with a NASDAQ listing later in the year.
This final point is the real bonus for us longterm investors - a move to a larger market place is going to unlock a large pool of potential institutional investors who will want tens of thousands, if not millions of shares to fill their funds with. This is the type of demand that we have been thirsting for. This demand will put excessive pressure on the 23 million share count. The only outlet for that pressure will be share price.
Outlook - going forward with listings on the TSX and the NASDAQ I will make the bold prediction that a company generating $50 million in revenue (forward looking statement) will trade a a minimum of 4 - 5 times revenue - with margins that will be approaching 65% in the coming years, this company will have a strong tail wind. Given the current share count, this could easily translate into a price targe for 2021 of $10 USD per share or an upside of over 200% from the current USD $3.30 per share...
This is what I find interesting - $20 million bought deal was not raised because investors are stupid. Someone else has done the math that I just laid out and said this is a better place to be right now, then somewhere else. That's what I think too!