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CBR

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13.5¢ carbon revolution limited

going to have some funds available from a sale of our business...

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Upxdn

849 Posts.

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09/07/21

15:12

Post #: 54399662
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Originally posted by speculator101: ↑

Hey Phantom,

Just had another read of the corporate presentation for the capital raising.
I should have been more brutal with the cash position, as I did not realise the raising costs were so high, plus, they had to pay back a small loan to the VIC government. So likely trading at an E/V of around $115-120m.
Investment of $72m over the near term means around $40m cash buffer, which, as I mentioned, is very good buffer, if.... issues like Chip shortages reduce. But, risks are there.

As for how much revenue/profit is required to justify the current market cap, in these markets.... business that never make a profit, after a decade, still have market caps in the U.S in the billions (10's, 100s....)

CBR is hopefully, as they have explained, going to be profitable near years end, then, the question will be easier to answer.

$20m, is as good a number as any though. The company plans to have margins of 600-800 per wheel, so they need to sell 28.5k wheels to achieve that. Right now, I believe they are selling approx 1/2 that on a yearly basis (though I think it would have been more, if the chip issues had not occurred). Production is supposed to increase, as more OEMs sign up and order etc. If they do so, then, I guess my investment will have been a wise one, if not... hmm..

Hope that helps a little. Hopefully later this year, more OEMs sign up and then the pathway to higher sales becomes locked in.

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going to have some funds available from a sale of our business in the next fortnight and this one is still on my list. This post was helpful but I was wondering if there is any credible timeline on the chip saga for start up if orders again? I really like the future potential but am a realist and also see the risk of cash for plant expansion having to be used for survival. A lot of companies have balance sheets and cash flows that look falsely positive from the job keeper history and I am concerned that cash burns this year are greater than people building analysis off last years cash flows are estimating.

CBR Price at posting: $1.16 Sentiment: None Disclosure: Not Held
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