RE: mcap14 Feb 2023 13:49
Crossword Cybersecurity PLC is overvalued. This is due to their attempts to gain a higher valuation and market cap by considering themselves as a software rather than a service, which is incorrect.
Their revenue figures for 2021 show an increase but that was largely fuelled by acquisition, and their 2022 figures are expected to see another leap in revenue, also from acquisition. However, their services appear to have holes. They claim to have 750 clients, which equates to an average worth of only £4,000 per client. This raises questions about the nature and value of their services and suggests that they may have poor client retention. Neither of which lead to a success in this space.
Selling or even shorting the stock may be a wise decision, as their current valuation seems inflated and is only being propped up by the market makers. Price should be closer to 6 not 15