If your assumption that "
no one who owns land is willing to underutilise thier land for a car park
" was true then there should not be any car parks?
Commercial car parks actually deliver decent returns to shareholders, enough to justify the opportunity cost of developing the land for other uses.
Furthermore, there are mandatory requirements for car parks and the number of car parks - think hospitals, apartments, shopping centres etc. In these instances, the best use of land is a multi-storey car park, as it offers the most number of car parks per square metre of land - and this is where PKD come in, with their ability to build a modular car park that further increases the efficiency of the land (by maximising the ratio of bays to land).
At a market cap of $12 million, with $4 million cash = enterprise value of $8 million.
Is the IP for the modular development worth $8.0 million? This is hard to value
A cost of a multi-storey car park is roughly $100,ooo per bay. So a car park with 300 bays would cost $30 million to construct. PKD mention that their modular build can save 30% on the build cost (as they can construct it faster and more efficiently). Assuming they bid 15% cheaper = $5.0 million
Additionally, PKD cater to those that only require a temporary solution - as they can construct and deconstruct a car park with their IP.
This Subaru pilot has the potential to prove their IP, and be used as a platform to win contracts.
2 x 300 bay facilities per annum could give earnings of $10.0 million. Applying a 10 x EBITDA multiple would give a potential valuation of $100 million.
Realistically, after they win a few contracts, I would imagine they would be bought up by a construction company / car park developer - especially at this market cap.
Risky, as they need to win these contracts (which is easier said than done), but if they do so - I think this has the potential to be a Disallowed.
The director buying at $0.195 was enough to convince me to make my move since last week - at pre-ipo prices, Im happy to buy.
