It is entirely possible a lot of this new money is only looking at the 4C operating cash flow also. This is not really yet capturing the power of the JV which I conservatively value it $500 million($250 for BCC) by June 2022.
By then we should have sold 100,000 Zoleos, or near enough, to then have that many subscribers and that could even be higher. But on those numbers the JV is making $50 million in high margin subscription revenue which is recurring in nature, it could be 50% margin which means the JV is making $25 mill a year profit. Under the revenue share until Aus/Asia and Europe take off RoadPost will receive more distribution but Beam owns 50% all the same of the entity.
There has been some talk of spinning out the Zoleo JV and on a PER of 20 which for a growing entity in the market does not seem stretched the value I come to is $500 million all up. Even if we halve this Beam is $125 million as a share. It may not even raise capital but just lost and RoadPost owns 50% and Beam shareholders 50% and then we can be NASDAQ listed and attractive to a takeover also.
This would value Beam shares at $1.25 to $2.50 just on the spin out, and if we do this in June 2023 could be even higher again. Left behind would be the Go!/Certus business and other devices, which Beam are looking to monetise so remaining shares could still be where they are now perhaps.
A broker report outlining all of these numbers could see us spike 100% in a day IMHO - Feb numbers will be very interesting as to progress in the JV but people aren’t buying these devices for door stops so it will be happening!
BCC Price at posting:
57.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)