On the topic of Tesla, it is interesting to note that, thanks to the recent market ructions, Tesla's share price has almost halved from its high earlier in the year, falling from US $917 to around $480 at current.
Vmoto's share price has fallen by a similar magnitude, falling from around 0.33 to 0.175 at current. Yet when you investigate the financials of the two companies, Vmoto looks like a much sounder investment than Tesla.
For example, the Tesla market cap is currently $88 billion, and looking at the balance sheet details for Tesla on the company website, the total assets are USD $34 billion versus liabilities of $26 billion.
Vmoto's market cap is currently 40 million, with assets valued at $25 million and total liabilities of 8 million in Australian dollars, as shown in the latest Annual Report.
Thus, the market cap of VMT is about 50% higher than the total value of the assets, with relatively modest liabilities listed on the balance sheet .
Tesla's market cap, on the other hand, is approximately 150% higher than the value of their total assets, and yet Tesla's liabilities figure is almost as large as the value of their assets.
The above is just a snap shot of course, but I think it is clear that at the current share price VMT offers far more upside potential than Tesla.
Another reason that I feel that there is significant upside in Vmoto is based on what I see when I run searches for 'Super Soco' on the internet.
Just within the past two months when I have searched for updates about Super Soco motorcycles, I've seen multiple reports on these bikes from numerous countries across Asia and Europe: Japan, Taiwan, Indonesia, Turkey, the United Kingdom, Italy and France.
These are just the countries in which the brand has featured on at least two occasions, and bear in mind there have been one-off reports from many more countries than those listed above.
I doubt most Australian investors are aware of the extent of brand recognition that is enjoyed by the Super Soco brand abroad. Conversely, I doubt the growing fan-base overseas would be cognisant of the link between Super Soco and Vmoto.
When investors overseas begin to realise that that they can gain exposure to the Super Soco brand through a listed Australian company, it is not hard to imagine that this could have a significant impact on the share price.
Finally, speaking of overseas reports on Super Soco, there was one that appeared a couple of days ago from the UK that I thought was worth drawing attention to.
The extract below is from a few paragraphs into the piece:
..."Since the UK went into lockdown, we have been amazed at how many key workers have come forward to say they are using their Super Soco motorcycles for their commute," Andy Fenwick, of Super Soco UK, said in a statement.
"We’ve made new sales to numerous doctors and other key workers and look forward to helping keep them on the road and working. Our affordable machines are a great way to maintain social distance whilst travelling, and with the roads being quieter than ever it is the perfect time to enjoy all the benefits that riding electric motorcycles brings."
Fenwick’s comments were added to by Aniko Deierl, a Consultant Neonatologist at Imperial College, London, who purchased a Super Soco TC Max for her commute. "I live in Harrow and work at St Mary’s Hospital Paddington, in neonatal intensive care," she said. "My Super Soco has halved the time of my commute, and the smooth ride gives me 20 minutes to think at the beginning and end of the day.
"If I wasn’t on the Super Soco I’d likely be on the train or driving, both of which involve significantly greater risks of Coronavirus transmission. I wouldn’t hesitate to recommend the Super Soco to other key workers."
So, good to know that Super soco motorcycles are playing a part in helping essential workers get to work safely in these baleful times.
VMT Price at posting:
17.5¢ Sentiment: None Disclosure: Held
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