RE:Intersting companySolarEclipse wrote: Does not look like they should be value at 60 cents plus with dropping sales
Ill keep a watch on this puppy ...30 cents would be a decent value on a numbers basis and not potential growth
I will counter argue that at 60c the value relative to the current reality is an extremely low risk/high reward opportunity. The reason being is at 60c the market cap is merely $45M and on an EV basis even lower at $40M. Despite flat revenue Q over Q, it is still very stable at around $3M, and they still churn out gross margins in low 60%'s which is very healthy.
At $40M EV that is just 3.3x (flat) revenue which is a valuation more inline with something that is in a mature industry that has low margins, and not accurately reflecting Ceapro.
The stock market does not take kindly to lack of growth and furthermore dislikes negative guidance (even more) of continued mediocrity for at least the next two quarters (i.e. running dual plants). Hence, the negative down draft the stock finds itself in. But is the situation deserving of a sub $50M EV capitalization? That one I am not so sure but the market likes to push things to the extreme both on the upside and downside in good times and bad times.
We now all realize 2017 is a transition year, so if you buy into the story (now) you are in for at minimum two years timeframe in order to let their pipeline and related commercialization play out properly. If you have limited patience then don't get involved now because you will only get further frustrated. Simple as that.
For disclosure, I have made purchases that I still bag hold at $1.04, $1.02, 67c, 61c along with a couple flip trades that got closed out.