Called this exact setup last week and sure enough it ran to .11 by end of day friday. its giving some of that back today and sitting at .08 but thats fine. We started last week at .06 so this thing is still up 30% and its moving on such tiny volume either way. it doesnt take much to move it because nobody is paying attention yet
I see some people worried about the debt on the books but honestly I aint to concerned about it **If** they can keep doing 4 mil a quarter and start servicing that debt with the cash flow. They are profitable now and generating real operating income which means they dont have to dilute to pay the bills anymore. That changes the whole game.
For the valuation part. look at the actual numbers. Standard biotech and peptide companies usually trade at a minimum of 1x forward sales. If you just take the Q2 run rate of 4 mil a quarter, that's about 16 mil a year. With around 35 mil shares outstanding, 1x sales puts this around 45 cents a share. My .25 target is just a ultra conservative baseline for hitting that standard multiple. If they get to 45 cents, the multiple is still cheap compared to the sector.
But honestly I think this is just the beginning. If they keep growing the top line like they did in Q2 and the new affiliate app helps drive those training numbers even higher the 1x multiple is way too conservative. You are looking at a company that is finally profitable with a 64% gross margin and a pipeline of new products in the peptide space. They are not burning cash they are generating it. The infrastructure is already in place and they are just now getting the attention they deserve.
As always do your own DD this isn't trading advice and I wouldnt marry RMTG! Short term play for sure until they can address the debt.