RGTI is very expensive at about 288 times trailing sales on $13.4 million revenue and is 80% off its high, with 94.16% dilution. Its 156% analyst upside may be skewed by one $40 target versus an ~$11 price; the $29.50 average is still good but could be skewed, so the speaker says to ignore the recommendation and focus on the sales multiple.
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learning Martian, thanks for the work the I team does. I keep thinking around the corner. RGTI, which is Regetti Industries versus Ionic, keep popping back in. I don't think today that either will might be an upcoming quantum leader, but instead a big player like Google might scoop them up.
Thoughts about taking a flyer on these. Both are today already today back at 2024 prices as so many others and seem to have a good good analyst one-year price targets.
First thing I do is when I look at these stocks and look at their price chart and I see they're back at 2024 levels, like you said in the question, why is that? And the first thing that that triggers in my mind is I go to my dilution model and I calculate.
I don't calculate actually the model does it. I just plug in the stock and it shows me the dilution. So these two Ionic 91.43% dilution and RI regetti industries 94.16.
the analyst forecast Regetti Industries 156% upside very impressive but sometimes these can be skewed heavily by one analyst and that one analyst forecasted 40 bucks currently it's trading out 11 bucks and that gets things a little bit skewed to the upside.
If you take the average at 29.50, still very good, but again could be skewed heavily by that upside target.
For example, Regetti is 80% off its high with about 13.4 million in trailing revenue. That's about 288 times sales. That's very, very, very expensive, my friends. Forget the analyst recommendation. Just look at the multiple of sales.