Been following CBR shortly after its float as I love the product and as a car guy I really want to invest.
I just can't seem to see how they can be profitable in the medium term. Back of the envelope calcs with some generous assumptions:
So 6mths to Dec 21, 6497 wheels were sold with rev of approx. $2.7k per wheel and cost of approx $3.9k along with other expenses totaling $15m.
Assumptions: -Acknowledging indirect and direct per wheel increases of $600, I've deducted this to reduce cost per wheel to $3.3k. -Then through efficiencies and economies of scale, costs reduce by a further 20% to approx. $2.6k. -Revenue per wheel, I've increased by 10% from $2.7k to nearly $3k. -Other expense of $15m from the 6mths to Dec 21 to stay constant (although unlikely).
On these assumptions 45,000 wheels will need to be sold in order to break even. That's a 700% increase in wheels sold.
Some of you guys seem to be quite deep in the weeds of their operations and quest to profitability. Is there something I'm missing?
CBR Price at posting:
67.0¢ Sentiment: Hold Disclosure: Not Held
