Value of revenue producing company on AIM6 Oct 2020 11:15
Hi all.
There isn't much going on but I have a bit of money in EUA so have been following along there with some excitement and jealousy at the real LTH's there about to strike rich.
There is loads of talk of value over there and it got me thinking about where SRES could end up. We are a long way away from their value obviously but then with an average of 0.16 I don't need it to go that big for a nice return.
One thing I was really thinking about was the value of these companies now when in fact they aren't really making any money. I think I have raised this point before but EUA turned over £1.1m in 2019 and GGP didn't turn over anything and yet their mcap's are £700m and £900m approximately. Now I know that we aren't comparable and most of their value is in the potential for the future but it got me thinking about how AIM would view a company thats actually generating revenues as we could well be quite shortly?
I a sure there are some examples on the market now but I can't really identify them, certainly in the mining sector, but surely a company with contracts and actually selling its product to market will get a lot of attention rather than all the speculative plays on the market? Or is AIM all about that speculation and they won't really be bothered about a smallish mining company generating revenues with an 'unsexy' product?
I like to think that the response will be quite positive if we can get some good long term deals that will guarantee revenue?
What does everyone else think?