NVX Chart, page-2913

Hi Adam,

If you look at the balance sheet of the company and its market cap, you will see a huge disconnect. It is a $2B market cap company ($5B not too long ago), which would be equivalent to a large revenue-creating, established and profitable business. On the paper, however, NVX creates a revenue that is comparable to that of a village store (around $6-7M). This means that the share price has already priced in a whole lot of good things for the next I-don't-know-many-years, and I personally don't have this much confidence that all these good things will actually happen.

Now, some will say 'but it's a growth company', or other such non-sense, but they need to understand that this misinterpretation of a 'growth company' is the invention of Covid-era excess liquidity. Companies normally don't become multibillion dollar businesses with a blank balance sheet. This is just the result of the unprecedented market distortion that we have experienced due to central bank monetary policies and fiscal policies of the governments. As the liquidity is drained out of system, companies like NVX will be the first and the fastest to lose in value. At the end of the day, a company needs to generate revenue and be a sustainable, profitable business to exist in the long-term. I believe that's what we are seeing with NVX among countless of other stocks. Only time will tell though....

That being said, if NASDAQ is anything to go by, NVX should hit $3.79-$3.8 when the market opens. The downward rollercoaster continues.