- Understand upgrade assumptions
- Don't ignore share based payments
Our two companies this week have certainly caught investors’ imaginations in the past six months but there comes a point when good stories begin to look fully valued. Furthermore, there are some important factors investors should include in their calculations, such as share based payments (SBPs), that are too often missed when expressing valuations.
Beeks Financial Cloud (BKS), which has focused on cloud computing services for financial services companies such as banks, asset managers and trading houses. ‘Beeks’ has been in business since 2011 and its shares listed on the Alternative Investment Market (Aim) at the back end of 2017. Its share price has been very volatile as, despite consistent strong revenue growth, meaningful profits and cash generation have remained elusive.
