RE: Valuation28 Jan 2018 09:18
Neil�s
I don't think it's a MySpace or a Facebook, but it's a risk. i don't want to keep repeating myself but this from motley fool "My rule of thumb for this type of higher-risk/potential-high-reward proposition is to pay no more than 10 times current sales. Annualising Versarien�s H1 revenue gives �8.76m, so multiplied by 10 gives a market cap of �87.6m or 59p a share. Therefore, I�d rate the stock a �buy� at up to 59p." Makes a lot of sense to me, and we're almost at 20x now, you've got to have some limit to where you draw the line, That's all. (Yes China news was after that was written, but still went to 90p before then)
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A fair point and you have recognised the China deal is transformational. Mr market is now factoring in �55m of leverage free capex and an expedited route to the third biggest market in the world whic is also a lost cost exporter. Things are going to move at pace and that is now being priced in. we have lots of news to come and just wait for fireworks when we get our first significant global order. A quid a tick was excellent value. Trek here�s to Mr markets market!