|I will be at Legoland in Malaysia with the kids on October 30th, so I'll have to check it out the following week when I get home.|
I have no idea what to expect, but the share price seems to indicate good things.
From memory, I think GRVY has $40m cash, and made about $2.5m net profit last Q? So they are on a $10m net profit run rate, I think so.
Today with a $32 share price, GRVY has a market cap of $110m
So... deduct the $40m cash, and you've got a company value of $70m. If they earn $10m per year, the PE is 7x.
Still cheap, but not as crazy cheap as it was 3 months ago.
However, for all we know maybe they earn $3.5m in Q3 rather than the $2.5m from Q2. That puts them on a $14m per year net income, and knocks the enterprise value PE down to 5x.
We'll see, I have no idea what to expect with them. If we could have confidence in their ability to sustain and grow sales, I think this type of stock trades at a big premium multiple. More like 25x or 30x if we believe their business has any lasting power. But.....it could go "poof" in a single report.
Damn, I held this for a year or two with a cost basis around $4.00 back when it was a pure cash play. Should have held on, but I think I gave up after a few years and sold it around $3.00.....my current holding was bought around $11 about a year ago.