PPK Value, page-207

This thread started with a post about PPK being “undervalued by the market by 150-260%”. And that was when it was 33% higher than it is today!

Why? Here are some bear case points.

CIB did $2.94m EBITDA in 22-23, less than half what some were predicting. Maybe it’s not so high growth after all – and in valuation terms that is a double whammy as it means a lower multiple gets applied to a lower EBITDA figure.

LIS seems to be forever drifting lower.That 5 year chart is horrible. Imagine what would happen to the share price if PPK actually sought to sell.

AMAG is a dog that’s been stumbling along for years. Good chance it’s a zero.

White Graphene’s valuation has been cut almost in half with its last raise, and PPK –which very much has a vested interest in the valuation remaining as high as possible - remains the primary buyer in every raise. On the open market its value could be lower again, perhaps materially so.

With one (?) tiny exception, BNNT’s only customer is PPK. Like White Graphene, it’s effectively reliant on parent company support for its existence.

Applying what some might call pessimistic assumptions, it is pretty easy to get a SOTP val that’s well below PPK’s MC.And given the fairly consistent selling and drifting share price, I’m guessing some people think those assumptions aren’t so pessimistic after all.