It is impossible to know what the “true value” of this stock is given that we haven’t seen any feasibility studies for the proposed gigafactories nor has the market been provided with much information as to the value of C4V in which Magnis has a 10% interest.
What we do know is the current cash position:
Cash in bank: $3,465,000
Q2 Outflows: $1,228,000
———————————————
End Q2 Balance: $2,237,000
———————————————
C4V payment: ~$3,992,000
(US$3M due ~29/03/2019) ———————————————
Shortfall: ~$1,755,000.00
(**which doesn’t factor in cash outflows for Q3 or Q4 ‘18 or Q1 ‘19)
Today the SP came very close to hitting its 52-week low of $0.36. The current trend suggests that a new low is likely to be hit very soon. The vagueness surrounding the NY gigafactory and lack of information appears to be creating uncertainty within the market and for shareholders.
The next few months will be very interesting indeed. Hopefully a feasibility study for the NY gigafactory will be forthcoming to help the market accurately value this company.
MNS Price at posting:
36.5¢ Sentiment: None Disclosure: Not Held
(20min delay)