Accumulation, page-118

Guys, what am I missing here.

Happy to be rebuffed, as I like the sector but can't fathom how this is cheap on a peer or absolute basis. I've included Alcidion's metrics below the table for fair comparison.

I don't think just saying, "they're a growing business", by itself, is a valid investment argument but management do look to have the experience to grow the company into a good little business.


NRR: Rev: $5M ------ P/(L): ($183) ----- MC: $42m ----- EV: $35M ----- EV:Rev: 7 ----- Rev mult: 8.4

As can be seen, at 7c, you're paying 8.4 x revenue. Yes. They are likely in the growth phase however that also requires increased expenditure. Do they deserve to be priced more expensively than, say, CGS, OHE, GLH? My suspicion is that i would be comfortable as a Patos client, paying 3.1c, implying a much cheaper metrics, both in absolute and peer terms.

Definitely not a bad stock and could definitely make a go of it but not cheap, based on the current knowns is all I would say.