GREY:XEBEQ - Post by User
Comment by
tamaracktopon Aug 07, 2020 9:05am
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Post# 31377818
RE:Do some math
RE:Do some mathtamaracktop wrote: Hydrogen plays today are trading at 17 x revenues. Xebec just bought $11.5 million in revenues for $6 million. If they went with 25%75 debt/equity ratio, like their clearly stated plans for Boo projects, they're putting down nothing for acquisitions. $1.5 million eguity for an incremental $11 million revenues. They have a foothold in the West and one in the east. There is nothing to stop this company from acquiring dozens of service companies for years. For ever. Now the market will start attributing Xebec's present value to an inevitable future recurring cash flow as if they've already bought 25 companies. Which they will. The market wont wait for news. The writing is on the wall. Add to that future cash flows from Boo forward purchase agreements and the market has some serious discounting to do. People will sell this because they think it just has to pull back. It doesn't, and it probably won't. The market doesn't accommodate the masses. It will leave many behind thinking selling was a sure thing. They won't have chance to come back. It's blue skies from here
There it was! The pullback sellers were waiting for! I'm thinking the really smart traders probably sold at the open yesterday at $4.90, and then bought back at the day's low at $4.75. Boy, I wish I could time the market like that.