NTG Clarity Networks Inc V.NCI

Price to Book Value = 37.54 at the close of yesterday

[Sherif]

Hello

We need to be very patient. 

Their strategy/business model looks like working. 

But it will take time. 

All the best to both buyers and sellers. 


Shrif

[Majeure]

Agreed but I'd say price to book is a silly metric for a high growth technology company. Try Price to sales, PE, or EV/ebitda  particularly on a forward basis. This isn't a mining, real estate, bank. Book value is useless in my opinion.

[Sherif]

Hi Majeure,  Thank you very much for your remarks.  I could not find the forward ratios, maybe you can help. 

[mlmack66]

Assuming the current run rate $50M in revenue with 20% margins and adding only the 53M new contract with 37% margins beginning September 1 for 3 years. For 2024 I get revenue of $56M with profit if $12.2M or $0.32 / share resulting in a blended margin of 22%. For 2025 and 2026 I get revenue of $68M and profit of $16.5M resulting in a blended margin of 24%. The $23.7M in profit over the next 6

[Sherif]

Thanks. Very useful. I have to get in soon. Sherif 

[Sherif]

How about Price to Sales? Currently 1.73 .

[mlmack66]

1.11 at the end of 2024, but this is all about earnings and growth. Very low PEG  ratio even now with 92% growth.

[Sherif]

Very useful to me.  Thank you very much indeed.  Sherif 

[Sherif]

I just moved my order to 1.23 Sherif

[Majeure]

Haha good luck.

[Majeure]

I'll be happy to fill another bid in the low 1.50's. Can't belive it got back here to pre-contract levels but congrats if you can catch it even lower. 

[bigkagan]

Do they provide their own software or resell other companies' software?

[bigkagan]

The book value of a software company is hard to calculate because all their assets are wriiten on the back of an envelope because it's a code, how do you value a code? It only has a value when somebody buys it. Their market is over 200 million people, so their market cap should be way more than $54 Mil., in the range of hundreds of millions at least. They could also be bought out by the likes