Buyers were happy to take out the 1.6c offers today. It will be interesting to see if the 1.7c offers get taken out tomorrow because the Chi-X has already moved up to (and closed at) 1.7c.
On the news front, the next announcement I am anticipating is the appointment of the US-based Enterprise Sales Exec. This will be an important step forward for CXZ. Following that, we also have an investor conference call and an upcoming insto roadshow.
The market cap at 1.6c is a mere $14M. No debt. CF+. Strengthening team. 22% market share. $2.8m cash in the bank. Pricing power. Very low risk of GM contract renewal. 2x EV/Rev, 4x PE.
The fundamentals are all there. It is now about trust and sentiment and that is evolving before our eyes as the company makes the right moves going forward. Even with no growth, a GM contract renewal on the same terms as before is worth 2.4c. A GM contract renewal on improved terms should take us to 3c+.
IIR Initiates Coverage: 4.7c price target (DCF base case), page-2
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