SVTE fair market share value: Its hard to classif
Post# of 417
Posted On: 05/10/2016 7:53:27 PM
SVTE fair market share value:
Its hard to classify the Price/Sales Ratio for the company since its specialized. Sectors [ http://pages.stern.nyu.edu/~adamodar/New_Home...sdata.html ]they associate with are trucking (P/S 0.73), Machinery (1.34), unclassified (3.43).
With annual revs of lets say 3.5M, P/S ratio of just 1 and lets say O/S of 100M a fair market pps would be at 3.5 cents. For an expanding profitable company that is specializing in its sector twice that amount (~ 7 cents) would be very reasonable and even three times that amount (~ 11.5 cents) justified IMO.
Prediction:
Transparency and reliability of the management is the key (apart from fundamentals)...from what I know now, i truly believe once the 1 cent threshold is cleared we climb rapidly to 3 or 4 cents. Then there might be some pullback and consolidation and building a base in the 2/3 cent area...after that and with wet pants and flippers being shaken out and without any new debt surprises (prior loans were taken out primarily due to facility relocation according to the CEO) pps will behave more like a big exchange ticker and grow slowly to 10+ cent end of year. Over the next years who knows where it can go (certainly no risk to hold a portion of the position for long investment) .
Its hard to classify the Price/Sales Ratio for the company since its specialized. Sectors [ http://pages.stern.nyu.edu/~adamodar/New_Home...sdata.html ]they associate with are trucking (P/S 0.73), Machinery (1.34), unclassified (3.43).
With annual revs of lets say 3.5M, P/S ratio of just 1 and lets say O/S of 100M a fair market pps would be at 3.5 cents. For an expanding profitable company that is specializing in its sector twice that amount (~ 7 cents) would be very reasonable and even three times that amount (~ 11.5 cents) justified IMO.
Prediction:
Transparency and reliability of the management is the key (apart from fundamentals)...from what I know now, i truly believe once the 1 cent threshold is cleared we climb rapidly to 3 or 4 cents. Then there might be some pullback and consolidation and building a base in the 2/3 cent area...after that and with wet pants and flippers being shaken out and without any new debt surprises (prior loans were taken out primarily due to facility relocation according to the CEO) pps will behave more like a big exchange ticker and grow slowly to 10+ cent end of year. Over the next years who knows where it can go (certainly no risk to hold a portion of the position for long investment) .
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