^^ That is just plain downramping ... if you have nothing constructive (it doesn't necessarily have to be positive) to say, then don't say it at all.
It is amazing how sentiment can change in a day. Fundamentally, nothing has changed from the report today. You can't expect a company that has been heavily investing in world class SaaS software which will take its SP to unfathomable highs to provide a stellar result. Of course expenses will be high. Of course results will be impacted by capital injections. All the selling today has been done by impatient share holders looking for short-term gains, who are completely ignorant to the enormous upside long-term EVS has once its SaaS platform is being utilised. The tech EVS has developed is game changing; putting it in the monopolistic league of ACX or WTC or ALU.
Don't believe me ....
Baillieu Holst provided an updated report TODAY, holding their valuation still at $0.14 (100% +) upside with a BUY maintained and stating this:
"
- Result below our forecasts: EVS recorded revenue of $9m (BHf $11m) and EBITDA of -$0.9m (BHf -$0.2m). EVS continues to incur above-normal expenses as it expands its software operations offshore, with offices established in the USA and Europe. Cash balance at 31 December was $3m.
- Offshore pipeline growing: EVS has signed a number of international channel partners, who are beginning to generate sales: recent wins include a regional water utility in Vietnam, a US food manufacturer and a Spanish port regulator. There are also trials underway with the potential for significant contract wins down the track, including Thames Water (UK) and the Environmental Protection Agency in California (US). Other opportunities are being progressed in the port, industry, aquaculture, government and wastewater sectors.
- Consulting division solid: Although splits are not provided, the commentary around the environmental consulting division was “solid”. The cashflow from this division is being used to expand the environmental technology division of the business (along with a $3m capital raising during the period).
- Investment view: The consulting division continues to be the primary value generator for EVS, but the market is essentially valuing the embedded technology business at zero, in our view. Based on a 5.0x CY17 EBIT multiple, we value the consulting business at $15-17m, compared with a current market cap of $14m. We believe there is significant future upside in the environmental technology software division – BUY maintained.
"
This will bounce so goddam hard in the next 3 months, and will soar in the next 12 - you'd be not only naive but simply foolish to sell now.
Warren buffet: "The share market is a device for transferring wealth from the impatient to the patient."
GTLA.
(20min delay)
