>>60776063
>5-10Xed pennystock for significant further upside exceeds the risk of significant imminent downside due to dilution and profit-taking
yes but also no, when a company hits a big growth inflection point due to some massive change (e.g. autocomplete technology reducing labour/time by 90%)
even if something has already 5x'd, you could still be looking at a 2x or 3x in a short time frame of 1-2 years
this is why institutions will still rush into a smallcap after retail just dumped their bags for a good 3x-4x. If there's clear meat on the bone, clear upside, why waste it
I'm late on intermap and they've had NEGATIVE gross profit, but they're very quickly increasing revenues/profit while expenses aren't growing as fast, that's what operational leverage is
thats why you cant always disregard ""unprofitable"" companies if they're in hypergrowth stage
if it was just that, then I'd prob have passed on Intermap because psychologically it is hard to enter a position after it just 5x'd, but its total addressable market is quite literally the entire earth, and yes they have a competitor but it's such a niche tech than even their competitor Hexagon cant fulfill the same shit, and even if they could, it's potentially a total addressable market in the hundreds of billions anyways, in a market where everyone else is at least 10+ years behind because it was such a shit business until autocomplete technology came into play
thats why i think people disregarding "ai" as autocomplete doesnt really make sense to me because AUTOCOMPLETE is fucking huge for cutting costs, the ai bubble is only beginning but a lot of smg still cant recognize or understand why because they only look at the chart and comment that it already 5x or 10x'd without trying to look at how or why