RE: Don't forget...14 May 2017 03:22
Folks here need to consider below before jumping to 30m mcap quotes ? Below are my thoughts:
* The £38.1m is the TOTAL VALUE of the contract over 6.5 years
* NO cost estimates provided for this contract ?
* NO profit estimates provided for this contract ?
* Based on 2016 revenue (as a guide), Net Profit to Sales Revenue % has ONLY been 3.61% of Revenue. Applying same 3.61% gives ONLY £1.38m TOTAL PROFIT over 6 years for this latest contract.
* Assumption is perfect & smooth operations over the contract life-time. However company needs to deliver first every year, without any DELAYS or any other ISSUES.
* Easy money has already been made with the 550% intra-day rise on Friday.
* New punters entering above 4.5p might find themselves end up holding the baby and trapped in for quite a while, especially folks who bought just under 6p on the spike on Friday, while traders exit their positions.
Each to their own. Invest wisely and do your own research.
There are few very attractive stocks (URU) out there at 50% cheaper price and 8-10 times more Revenue estimates than UVEL.
IMHO, DYOR.