Aquarius18 Aug 2024 11:41
Potential value even as private Co
Sorcerer
Posts: 266
Price: 1.475
No Opinion
Current SP16 Aug 2024 19:56
Has absolutely nothing to do with the value of the company - how can a company with hundreds of millions of dollars worth of contracted revenue (not pipeline, CONTRACTED orders) be valued just £2m, which is less than half the value of cash they have, let alone their IP, cutting edge capabilities and the future value of those contracts (plus those yet to be announced).
The answer is uncertainty - the market, and PIs in particular, hate uncertainty and while the business has now likely turned the corner, the uncertainty about future returns to shareholders remains, which is why the SP is on its *rse. But sentiment is never a good way to value a business - fundamentals are - and that’s why, even with the shares now trading below 20% of what ROX paid for theirs in the placing (which BTW is considerably more than many PIs have paid if they’ve averaged down), they are still smiling. Why? Because they know what they have bought into here and they know that, even at 10p per share, it’s a ste