Quantum eMotion Corp V.QNC

Valuing QNCs Patents

[TrickyGame]

There was that PR saying a third party company specializing in quantum tech valued the patents at a top end of $3.435 Billion USD. It's still up so the exchange must consider it valid PR or else the company would have had to remove it. I did a rough calculation of QNCs worth per share using each valuation the third party gave the patents.

1. Lowest $1.580 Billion USD converted to $2 Billion CAD cut in half to $1 Billion CAD divided by shares outstanding

$1,000,000,000/112,777,838

Value: $8.86/Share

2. Low $1,580 Billion USD converted to $2 Billion CAD divided by shares outstanding

$2,000,0000,000/112,777,838

Value: $17.73/Share

3. Mean $2.5 Billion USD converted to $3.20 Billion CAD divided by shares outstanding 

$3,200,000,000/112,777,838

Value $28.37/Share

4. High $3.435 Billion USD coverted to $4.4 Billion CAD divided by shares outstanding

$4,400,000,000/112,777,838

Value $39.01/Share

There was some assumptions in the PR like the QRNG market reaching $14 Billion by 2030 with a CAGR of 60% and QNC's tech being cutting edge and ahead of most competition.

Does anymore agree/disagree with my valuations?
I'm in for 15k at $0.175 wishing it goes lower so I can add more. I'm thinking it might go to $0.10 if it hits a Death Cross in the next few days but I don't see it going much lower than that. Assuming the product hits sales in Q1 2022 I see it going higher if the company starts reporting revenue from  sales in their Q1 Earnings report. If it doesn't go much lower than current SP I probably will buy more as if it goes anywhere near even the lowest valuation at $0.175 the shares are a steal.

[Munger]

There will be no sales in Q1,2,3 or 4. Period. 

[TrickyGame]

When do you expect the company to begin selling the product?

[Munger]

Never. This is a buyout Company. They currently are a one man show which is an Achilles heal for any Company. You invest here for the buyout. 

[luckyluc]

No products and no buyout either. Quantum computing will never make it to the general public in a near term (next 10 years) so this technology has no attraction whatsover as we speak

[Munger]

So when do you sell Lucky or did you already?   We're all ears

[luckyluc]

I will sell on jan 22 ! Hope it will not be too late....

[luckyluc]

I am loosing all hope on this after more than 4 years hovering around up and down. I expect Bellido will also come to same conclusion than his predecessor by jan 22...

[Munger]

It will be too late. Sell now at .175 and take your loss. 

[luckyluc]

No loss to take as it is all in TFSA....

[TrickyGame]

ok. How many shares you have?

[Munger]

I used to think Farmer had the most but he has been quiet for a long time now. So I may be close to the crown. Farmer had close to a million shares. 

[TrickyGame]

So if he had close to 1 million shares say 900,000 and your close to that you have 600,000-850,000? anyway. What's your average cost per share? What do you think the Company will be bought out at? Even if they have no sales they have a decent product it seems like. According that report 7 months ago the tech is cutting edge with few competitors and the patents were valued at $2-4.4 Billion

[windymayor1]

Shares o/s will be off as they stated on the last conference call they require $10mm in 2022 for current R&D so add another 50 mm shares and 25 mm wts. And thats just this next round at possibly $0.20. Then they need R&D on several other patents  which will then require more dilution. Could be 200-300 mm shares by the time they sell. Still much higher price than current. Would 

[Munger]

Bottom line is Bellido must exercise his warrants. Not doing so would be the canary in the coal mine. 

[warlord2]

Agreed, is there any activity there? Checked SEDI last week. No apparent activity by FB. Insiders have not been too active in general. Considering the great potential, is disappointing.

[luckyluc]

U should sell before it is too late, he won't exercise all his warrants

[warlord2]

It's already too late... :-(

[TrickyGame]

you seem to bashing the stock saying people should sell. why? you said in a previous post you hold shares in a TFSA you can't use tax loss selling if you sell  at a loss. So why bash the stock? seems counterintutive if you own the stock 

[warlord2]

Seems optimistic. Without any sales performance, it would be risky to buy out at such high prices. No serious company board would approve. Then testing the prototype to see if it works as advertised. That period could be quite long. What happens if the offer is only a royalty deal?   There is an interesting primer at Investopedia: https://www.investopedia.com/articles/fundamental-analysis

[luckyluc]

Agree 100% with your assessment far from a buyout and not even sure they will meet these requirements for this to happen

[luckyluc]

You can achieve all this with a one man company....i can only see a M&A to make this happen 

[windymayor1]

Agreed,  Blackeberry - G&M article on their 38,000 patents. Obviously a different sector and a different time. "the portfolio could be worth more than US$450-million - a significant size for a deal in the global patent trade, but a fraction of the US$4.5-billion a consortium led by Apple Inc. Apple Inc. paid in 2011 for a trove of 6,000 Nortel Networks patents."

[warlord2]

BB had 20.7% unit share of global handsets market in 2009 without reporting the 4th Qtr. Value comes with revenue not only theory.