What are your thoughts on the fast growth of BU.TO, and is it worth investing in now?

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Asked on August 18, 2020 9:29 am
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It is so hard to value these companies. I mean if you look right now, the company is trading at 6700 times sales.

They had $31,000 in revenue last year. It's likely that you yourself made more in fiscal 2019.

However, analysts are expecting some massive revenue growth in 2021 and 2022. It's got a pretty healthy balance sheet, and should be able to fund expansion. $6.6 million in cash alone, enough to pay current liabilities almost 5 times over.

This was a micro cap stock with almost no revenue 5 months ago, and has now tripled in value. One thing I can say about an investment in the company is it would pose significant risk, so if you're going to do so, do it with expendable capital.

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Posted by Dan Kent
Answered on August 18, 2020 11:21 am