Peer Valuation Comparison, page-21

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11/03/18

18:00

Post #: 31672639
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Originally posted by Optimis ↑

A few people here seem obsessed with finding low Market cap/Revenue ratios such as BIQ? Great in theory but if misused this ratio will simply send you up the wrong garden path to beaten up, poorly managed, slow growth, duds. Some people don’t appear to understand the difference between a speculative, startup stock and an old worn out stock..

BuildingIQ has been around since 2009. They listed in 2015, raising $20 million at $1 a share (now only 7.9 cents). At the time of listing they hadn’t turned a profit and they had 35 million sq ft under management. With all the capital raised, after 9 years, they only have 100 million sq ft (just over 1000 buildings) under management. Growth has been SLOW. And the management team doesn’t seem to want to expand and grow (or they don’t know how to... or the product is unable to expand quickly?). And they are still operating at a loss!!

Back to the topic of low Market Cap/Revenue ratios.. BIQ is low. Have you asked yourself why?

The obvious reason is the market doesn’t see any potential in this company to grow. It’s had 9 years to prove itself and all it has done is proven it’s a slow grower.. Future growth has been completely removed from the market cap of BIQ. This implies no one believes in the management at all. And when and if they eventually turn a profit, no one expects it to be substantial.

So that table comparing Market Cap/Revenues isn’t really worth considering if you’re gonna start comparing new products (BUD, 11 months old) with old product (BIQ, 9years). Some of the new products have growth built into the market cap. Maybe due to management that are on the front foot, product scalability, global reach etc.. The old products, unless something has changed, are just beaten up duds that no one sees any potential in. Yes BIQ has a lot of risk taken out, but I think it’s pretty obvious why.

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I bought more BIQ

BIQ Price at posting: 7.9¢ Sentiment: Buy Disclosure: Held
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Peer Valuation Comparison, page-21

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