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eerrtt

1,594 Posts.

23/10/18

14:34

Post #: 36225811

Originally posted by 1ronnie: ↑
One way to determine if a microcap stock is appropriately valued is to compare your stock valuation vis-a-vis other microcaps. While a direct comparison based on numbers could be deemed arbitrary because they have different businesses and you argue different potential, it does provide you an indication if there has already been substantial premium built into your stocks price.

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10
1 Stock Code Stock Price Share Base (mil) Mcap (mil) Annualised Revenues* Mcap/Rev (times) NPAT (mil) Major Contract Customer Traction
2 OEC[/B] ORBITAL CORP $ 0.580 77.37 $ 44.87 $ 21.00 2.14 $ 2.20 YES YES
3 MYE MASTERMYNE $ 1.230 101.10 $ 124.35 $ 201.72 0.62 $ 5.59 YES YES
4 YOJ YOJEE $ 0.083 950.61 $ 78.90 $ 0.42 186.09 -$ 5.93 NO LOW
5 BUD BUDDY PLATFORM $ 0.110 1,149.05 $ 126.40 $ 2.08 60.65 -$ 12.80 NO LOW
6 LVT LIVETILES $ 0.405 551.57 $ 223.39 $ 5.69 39.29 -$ 23.10 NO YES
7 * excluding grants & interest income
Here I provide an example.
If you compare what I deem to be yesteryear's darling stocks YOJ/BUD/LVT, you can see they do not provide much value. All 3 have minimal to low revenues, huge losses and absence of major contracts. For half the valuation of LVT, MYE has generated $200m in revenues and have a $5m profit. For about half the valuation of YOJ, OEC has 10x its revenue and already secured a major long term contract with a subsidiary of Boeing (USA).
More revealing is the market cap/revenue ratios of these stocks. OEC and MYE are only trading at 2.14x and 0.62x of their revenues which suggest great value- compare that against YOJ at 186x, BUD at 60x and LVT at 39x.
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interesting comparision! The ASX continues to slide into better value territory. What is the fear now, that the US Bull Market is waning? Or just general selling, usually we rally in to Xmas, but seems plenty of cold feet out there!

Upvote

0 Great analysis

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	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9	Column 10
1	Stock Code	Stock	Price	Share Base (mil)	Mcap (mil)	Annualised Revenues*	Mcap/Rev (times)	NPAT (mil)	Major Contract	Customer Traction
2	OEC[/B]	ORBITAL CORP	$ 0.580	77.37	$ 44.87	$ 21.00	2.14	$ 2.20	YES	YES
3	MYE	MASTERMYNE	$ 1.230	101.10	$ 124.35	$ 201.72	0.62	$ 5.59	YES	YES
4	YOJ	YOJEE	$ 0.083	950.61	$ 78.90	$ 0.42	186.09	-$ 5.93	NO	LOW
5	BUD	BUDDY PLATFORM	$ 0.110	1,149.05	$ 126.40	$ 2.08	60.65	-$ 12.80	NO	LOW
6	LVT	LIVETILES	$ 0.405	551.57	$ 223.39	$ 5.69	39.29	-$ 23.10	NO	YES
7	* excluding grants & interest income

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