Xro Valuation and Market sentimentsAn xro investor has recently taken a position in a newcomer to the industry. Posting on the hrh forum and just today elaborating on the hopes of a bright outlook. Also bringing to the table grave concerns regarding the new emerging company in respect to it's trading patterns and the inherent risks that are associated with any venture investment. In the spirit of cross -board dialogue and sharing that has recently been established again - and being a recent xro investor myself who remains actively interested in company developments- I felt it appropriate to respond reciprocally, and reach out to the respective board with my outlook and concerns.
Congratulations to Xro shareholders in the recent Sea Electric partnership. Sea Electric being "recognized as a global leader in the electrification of commercial vehicles" is a significant comapny to become involved with. A real accomplishment. Unfortunate that the gold oriented market has responded with a substantial drop in SP in relation to where xro stood just 10 days ago. Any interested shareholder would have to ask the question "why". Even a most casual evaluation would lead an onlooker to presume that a previously established overvaluation could be a mitigating factor.
The prime consideration being that Exro's ceo Sue Ozdemir has openly shared that the prospect for company profitability remains years away. A burdensome timeline for investors - who at the present moment - seek the absolute best rock bottom value for their money. With 11 million shares on the market at 70 cents, it does provide some solace that a floor is not far off. Still it would represent a great depreciation from market value today.
Complicating matters further, there were many days of trading at lower volume and no associated news that helped increase the share price to reach 70 cents in the first place. The significance of the price movement during that particular time actually persuaded Exro managemnt to communicate to the public. That they were not aware of material changes in relation to the drastic appreciation. While it provides a short term benefit to shareholders it has other implications that are not all positive. It actually creates the unique and possible scenario - think of it like an air pocket underneath ice - whereby many investors have purchased at exaggerated valuations in a company that is still many steps away from justifying those kinds of SP prices with corresponding market sales. Intrinsically bringing into play a high pressure shareholder atmosphere. Who's members could soon be collectively demanding concrete steps towards the kind of company profitabilty they had initially anticipated. Leaving the logical possibility of a drastic drop in market cap
I have an insatiable curiousty when it comes to this new and emerging field of optimizing electrical motor performance. I'm very confident in my personal outlook, and none of the accusations or personal insults affect that. I will be more than happy to continue these discussions to much greater lengths on this forum if so desired. Although I can't help but wondering if - even with the reality of intersecting mutual interests - it wouldn't be more simple to try and direct our biases towards the support of the most appropriate forum.