CBR had an IPO price of $2.60 per share back in November 2019 and a $330m MC at the offer price. It then reached a max price of circa $4.30 I believe in early 2020 at a MC of circa $550m.
We are now at $1.15 at a MC of $250m.
What happened? COVID and some additional supply-chain stress to their OEM customers who are subject to a lean - just-in-time - operation. Unlucky yes, but mis-management and telling half-truths to the investment community......not even close in my view.
This is a well-timed shakeout to maximise a lower buy-in price, as the half-yearly won't meet guidance. Sentiment is never healthy when there is a shift in guidance following a CR. Those that can see past this, and realise there is an increasing order book will be very happy in two quarters in my view.
The company has a great innovative product, with significant and increasing pull from OEM's. The recent mega-line CR validates this pull with significant investment from respected investment houses. The fundamentals haven't changed. This is a well-run business from what I have seen, with performance KPI's per wheel driving an accountability that will flow through to the bottom-line when supply-chains rebalance......and I believe they will. Next 12 months Price/normalised earnings is 10!
DYOR
CBR Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
