RE: Heading for all time lows?28 Aug 2019 17:33
I did not buy, I stated I would wait for results, although I may be tempted by a sub 1.5p share price, it is still risky as this company could easily carry a valuation of anywhere from 4m MCAP to 10m MCAP+ - we all say the downside is limited because the SP is 'so low' however last years EBITDA loss was 2.2m GBP down to 1.6m GBP after foreign exchange/board restructuring etc.
The Group's operating loss increased to £2.5m (2017: £1.6m) with £0.65m of the increase relating to non-underlying items. Loss per share is consistent with the prior year at 1.56p (2017:1.52p). - even if you take off the 0.65m that's still a big increase, so as we don't have any new 2019 results to go on we can only look back at 2018 results and say, well what has happened since then?
Now the SolarWinds deal, signed Post period - which can contribute 'circa £400K per month or more' I believe was once quoted could dramatically reduce this figure and send the company into probability over time, but this was signed in September 2018? Not a single RNS since, not even one large contract? What about other aspects of the business or is this company simply a 'SolarWinds or bust play?'
The current MCAP is what 6.5m? Cash should be Circa 2m+ unless they have invested heavily in assets we are not aware of, however to be fair you can't price in cash in a loss making company, or do so at your own risk - revenues are meaningless if you are not achieving growth to the bottom line (minus one off costs or investments of course, or things out of the companies control)
There's nothing wrong with making a loss as long as you have a plan for the future and a road-map to profibility, and execute that plan and show evidence, they appeared to be on that path in September 2018 with the signing of Solarwinds deal, shortly after they drifted into the fog and as of yet have not returned
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