RE:RE:RE:5 Trading days left in June !swyint123888 wrote: I would have fully supported them spending 10 million in cash to buy shares of an established EV player that has revs and earnings.....I'm sure things are at a discount right about now too....there are many ways to play the EV future but some ways will pay back way way quicker and have much better chance....like investing in an established player.....oh ya and save 66 million dilution shares....tough call eh Marshall
Yes, that would have been incredible to have acquired a well-established EV company with revenue, but unfortunately in the real world, such a company would not have been acquired for only $10 million or 66 million shares.
I mentioned this already in a previous post weeks ago, that many investors here seem to think Marshall is going to pick up a company making $30 million in revenue for only $10 million. That's not going to happen in this market or any market. Somehow you think Marshall is going to pick up a well-established EV company with no dilution of shares??? Are they giving away EV companies for free? The idea is to look for an undervalued company that is currently at 1-1.5x earnings or below and has the potential to turn a 5-10x profit. Ironically, DM fits that bill for a larger company to aquire it.
Acquisitions can take months or even years to negotiate. If they were to start looking for some discounted EV company in this current market as you have suggested then you would need to show far more patience then you have shown for this CEO and company, as that deal would probably not be concluded for several months or even into next year. At which point, it could put DM further behind in establishing market share or establishing connections and partnerships with the right companies in the space.
Marshall acquired a company with connections and partnerships to a number of car companies and a company that is DEBT FREE!!!! This very significant factor is highly overlooked by those who love to complain. I believe Marshall and his team know what they are doing and if I didn't trust them or believe in the direction of the company and all the other verticals than I wouldn't be invested in this company.