Ann: Market update, page-72

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Phantom77

2,217 Posts.

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27/06/21

16:34

Post #: 54101923
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Originally posted by speculator101: ↑

Hey Phantom,

good questions. I honestly cannot really comment on the chip situation, as whenever I try and get a summary, its still not clear as just just how long the shortages will last, and, in which sectors. That being said, to date, the shortages only seem to be very short term for the car producers, 1-2 months, whilst a clear issue, is simply not a long term issue.

The current market cap, includes the recent raising, which means the company is trading at an E/V of around $110m.
They plant to spend approx $50-60m on the Stage 1 Super line, which gives them a buffer of around $50m over the short to medium term.
They were almost cash flow positive last quarter and plant to be by years end, though, if the shortages continue, then we will see.

I had not expected the share price to fall so heavily after the raising, though I did feel it would suffer for a little while, as its a lot of news shares ($95m worth). I think the recent selling was exacerbated by some forced selling. In either case, I continue to buy around these prices, as if production lines come back on line, and CBR continue to reduce costs, well... I think this is a real business and over the long-term, has some seriously huge potential.

Good luck with your investments.

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Thank you for taking the time to reply.

CBR initially applied for an IPO via issuing 136,240,052 shares at $2.60 = $354,224,135
and later CR of 59,375,000 x $1.60 = $95m. Total funding raised = $449,224,135.

Now, its value has halved to MC 229.4m and it also have 30% more shares.

I have little financial knowledge but how much revenue and profit does CBR need to generate to off set the 30% increase in shares on issue and justify its mc 229.4m? Does it have to make a profit of approx. $20m to justify mc - $229.4m

I like the business as there is a big market for the product and the wheels can be mass produce.

Can CBR survive if the chip shortage drags on and at what sp?

CBR Price at posting: $1.12 Sentiment: Buy Disclosure: Not Held
1 Upvote

0 Great analysis

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Ann: Market update, page-72

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