In a follow up to my previous post on Trakm8, whilst I was unable to attend the recent AGM, I've just caught up with the video now available on their website:-
https://www.trakm8.com/corporate-videos
If you're a shareholder or prospective share holder then it's an hour well spent, and is very informative. Most notably for me are the assumptions looking forward.
They are certainly ambitious assumptions in terms of the growth in number of units.
One of the slides assumes that by 2021 (2.5 years) recurring revenues could be £26m.
John Watkins says that recurring revenues would then cover overheads and the profits reported will be the gross margin on everything else they do.
Back of a fag packet guesstimates by me. Assume recurring revenues make up 50% of total revenues then £52m revenue. Gross margin at 49% of £26m is approx. £13m profit.
P/E ratio of 20 for a growth company gives a market cap. of £260m. That's a share price of over £7.
If they achieve anywhere near those assumptions then the next 2.5 years could be rewarding from a current share price of 62p.
As ever DYOR, but short, medium and long term the company is looking cheaper by the day.
Twitter: @michae1mouse
No comments:
Post a Comment