The issue with valuing this company is the revenue for a hardware business isn't as exponential as a service business like apt. The revenue multiples one would pay is much lower for hardware business making it harder for brn to move on a purely fundamental basis. Revenue as well is going to be a challenge as they are truly 3 years ahead of the market, what would mercedes do with the chip tommorrow? Concepts are Great but hard revenue is due different.
What is does have going for it is the hype and headlines. Lots of partnership headlines to come and the stock will move on implied revenue when there is something tangible to show. This stock is also the talk of the town and no doubt some great posters on hotcopper help. A two sided sword given we are now paying for emotions and receiving emotional volatility, example does Mercedes using akida really warrant an additional 400m valuation?
I am a buyer in waiting. Do I regret not jumping in at 60c? Probably, but I find it nearly impossible to Find a valuation for this company leaving me only peer multiples;which are lacking but one can highlight Intel's purchase of Habana for 3b as a comparison on patents alone. The alternative is to get a sense for the share price and buy many times; thus leaving value once we smooth out the emotional premiums.
I hope to buy in at 78c, I guess I could be hoping for a long time! But the ship isn't leaving beyond fair future value for sometime.
16b in two years ? Sadly I think the will be bought out before, why Intel hasn't moved as yet is worth considering. They have a competing product, if brn has the better chip, 2b is nothing for Intel which is a 200b company.
Great company for those who can see it through..
BRN Price at posting:
97.0¢ Sentiment: Buy Disclosure: Not Held
(20min delay)