80c? I guess the market sees things very differently. I'm surprised you held to over $3 in that case.
"With less than $10M in annual sales" Revenue from Spacetalk division was $2.3 mill for the Dec qtr and the large majority of that was from Nov (when JB launched) and Dec (Spark joined in). That works outs to around 13mill annualised (allowing 0.8mill for Oct) - assuming no growth. App revenue is compounding. There will be good growth. The CEO has said that a Telco will be joining this year. The only one they have told us they have been talking to is Telstra and Telstra offers the best coverage. It will most likely be Telstra. That would bring the number of outlets up by another 360 from near 200 JB stores and could very easily better than double our annual sales to around $30mill. UK could sell at least double what we sell here (another $60 mill). The market knows there is every chance that annualised sales going forward could be growing to more like $90mill with large growth avenues to follow (other European countries). Clearly, no-one (but perhaps you) is basing their valuations on $10mill in sales. Sales have grown very strongly with B&M outlets and that is far more likely than not to happen again as more outlets are added in the UK, here with Telstra and other European countries. Sure there is risk that sales don't meet expectations but those expectations are certainly not for $10mill in sales. The market is always forward looking and values companies accordingly.
MWR Price at posting:
$3.80 Sentiment: Buy Disclosure: Held
