The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Oldas, That is absolutely the key point, with ever stronger certification/evidence of a quality and effective product as supported by MAPA and future sales orders (human nature for people to want to see that others have bought first) the next 6,12, 24 months should see a material re-rating of the SP based on revenue fundamentals for the first time. In the greater scheme of things the next few days and weeks are not important albeit, as A LTH I always like to see growth in the SP, but slow and steady from 21p to 30p plus is much more likely to be sustainable compared to a meteoric rise.
Milly - Have you tried it? I’m due to receive my ‘Go’ this week.
All just guesswork and speculation of course but I think it highlights the size of the opportunity.
So, Zuckerberg/Facebook is targeting 1 billion VR users. Let’s assume they achieve just 1% of that in the the next 2 to 3 years (prudent estimate) that would be 10 million. 50% of the ten million decide to download on average one concert every other month, that would be 5 million payments of £60 to EVR p.a. That amounts to £300M of revenue. EVR keeps 20% = £60M. I’ll assume £20M of operating costs, that would mean circa £40M profit before tax p.a. On a PE ratio of between 10 and 25 the MCAP of EVRH would be between £400M and £1 billion (I’m ignoring corporation tax at this time). And that is based on Facebook achieving just 1% of their target for the number of VR users!
Cunir - I�ve just tried the app and I think it is fantastic so yes I think you could be right. However, I�ve now ordered an oculus too as I love the idea of feeling that I will be at the concert and being immersed in the atmosphere - if it works, and the feedback so far is impressive, then I believe the VR experience could be so compelling that it could be massive. Let�s hope for huge sales from both platforms!
Thanks - it works now, I had to change the filter to iPhone only for some reason!
Petebo - I tried that on my iPad and the only thing that came up is a meditation app!
Now as the SP goes through the normal 'AIM games' as day traders impact the SP so much in the short-term do the more experienced of you out there think the placing at 16p will provide strong support for the bottom before the next rise or do you expect a lower low?
At 10am this morning that was definitely a buy.
This is a tech start-up company. It starts being revenue generative today! It was always going to post a loss for last year and that I’d totally irrelevant. The owners decided to become millionaires now and keep a lot of skin in the game as they aim to become billionaires. That is called hedging your bets and and a very wise thing to do - IMO it is not a sign of any concern about the future SP. If they had sold out more than 50% of their holdings I’d be worried. Does anyone who has actually researched this business/product believe the SP will be lower in 6 months than it is now?
had to come - this is AIM after all. Going forward we can focus on fundamentals - Very bright future ahead.