There is a lot to learn from GYG. It is a wake up call for all those who think the market movers play a straight game. It's also a reminder of the stupidity of following where the movers are leading the share price without looking at the fundamentals.
"We need that sort of market stupidity to come back for VMT as well (or the market in general) and I'll make an absolute killing."
The Tesla PE ratio history shines a very bright light on how stupid the market got when it smashed the market down in march 2020 and then sent it flying to the moon later in the year.
The good news is of course that it will do it again as soon as the fear of missing out returns and replaces the fear of a recession. The time to sell when others are paying crazy prices awaits us.
At the peak of the craziness Tesla was trading at 1,120X earnings Vmt was at a more modest 65. Today tesla is trading at 46x and VMT is trading at 6x
VMT's strategic plans have them building capacity to deliver 600,000 completed unit equivalents.
When they will get there they will have a minute share of the market and revenues of circa $2b and earnings of $140m plus i.e. 33c a share Multiply that by a PE ratio a tad less than 1,120 if profits are growing 10x pa and the power of the "price to growth ratio" comes into play and a crazy market could make your dreams come true in spades. A more modest 65X might be a more realistic dream for an exit.
VMT Price at posting:
14.5¢ Sentiment: None Disclosure: Held
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