Vicinity Motor Corp VEV

$4.58

[russter]

Pathetic New Flyer should buy them out and use their facillities for their own production.

[MrAnswers]

Their facilities are not worth the market cap. I have been negative against this stock since the spike at the start of the year as they had no back log for the back half of 2021 but if their guidance for next year is accurate its actually getting close to buy territory assuming they win enough contracts and get enough revenue from their partnerships to have sustainable revenue and decent revenue

[StockGiba]

Maybe their guidance last week of $140M and cash on hand together which is less than a ratio of 1:1 to present market cap.  Is my math right.  Sorry the cash on hand and sales in 2022 is actually greater than that.   Lay off the kush pipe.     

[MrAnswers]

7% margin on that revenue as they only guided for $10mil in EBITDA and the unfortunate part of that cash is that a lot of it came from diluting existing shareholders and issuing debt so not worth as much as you may think. Obviously this thing looks a lot better now than it did 6 months ago as the share price has cratered assuming they can hit their guidance but they need to start filling the

[StockGiba]

The lower per cent would be from the expenses related to the new plant, marketing and sales. As far as dilution.  At less than 35M shares atm.  I'm not losing sleep over dilution especially a company in the growth phase.  9 out of 10 companies I own all have over 100 O/S and I would argue that is the same for most.  

[MrAnswers]

The new plant is a capital cost so wont hit margins until they start depreciating that asset and it also will not impact EBITDA as that is an acronym Earnings Before Interest, Taxes, Depreciation and Amortization so lower margins are not a result of the new plant. Dont forget they also did an equity issue last November so they have done 3 (or maybe only 2) equity raises in the past 12 months

[StockGiba]

As far as equity raises.  They might have been around for 10+ years but they're going through a heavy growth phase into a few new segments.  They will need cash and more cash as they have some expansion costs, r and d costs and various others but with guidance of $140M for 2022.  I'm in the industry myself and know the expenses associated with new plants, machinery and start