Catapult International Group Ltd (ASX: CAT) shares hit a 52-week high of $1.57 today, but remain well short of highs above $4 printed in 2016.
The wild share price ride of the sports analytics and software-as-a-service (SaaS) group reflects how it has divided bulls and bears in the investment community.
On the one hand its low price-to-sales ratio looks a screaming bargain compared to SaaS peers such as Pro Medicus Limited (ASX: PME) or WiseTech Global Ltd (ASX: WTC), but on the other hand it has a disappointing track record of raising capital at ever lower share prices.
According to its latest Appendix 3B regulatory filing it has 190.9 million shares on issue to give it a market value of $287 million on just 3x 2019's sales of $95.4 million.
The latest full year loss narrowed to $12.58 million and investors are probably bidding the stock up after it named ex-Amazon executive Will Lopes as its new CEO. A permanent CEO provides more certainty for the business and is likely to encourage the bargain hunters.
Catapult is targeting positive free cash flow by fiscal 2021. If it achieves this goal today's investors could be well in the black.
