Its been almost 1.5+ years since the last tech stock boom when potential tech stories offered promising blue sky potential.
Looking back at some of these tech stocks that have been operating for a number years, one common theme is that it seems to be very difficult for them to break even let alone generate a modest profit, and many yet to even produce decent revenues.
If you look at the table below, Group 1 tech companies show (i) very poor results with widening losses, (ii) widening share base as a result of numerous CR (iii) high Market Cap/revenue ratios and (iv) still very high market cap valuations ranging from $60-280m!
Group 2 tech companies only sin is inability to shake off losses, but each have generated decent revenues especially relative to their market cap and their losses are moderating.
Group 1 tech companies simply have valuations that still appear excessive for their relative progress to date while Group 2 tech companies are seemingly overlooked by the market for what they have done.
While such comparison does not take into account the different nature of their businesses, but it does reflect that the hype valuation in Group 1 companies has not ended despite their falling knives sp to date- they are not out of the woods so to speak unless they can produce something to turnaround their fortunes. The only exception would be NUH which have had their hearing bud accepted by NHS in a multi million dollar deal that is yet to be reflected in their accounts.
