RE:New Blog out today from CHF on PKK, excellent readingendeavour wrote: https://chfcapital.com/cms/wp-content/uploads/Peak-Positioning-and-Chinese-Commercial-Lending-P-August-6-2018.pdf
Some very important points - see this paragraph:
"Let’s take a look at some numbers to see what all of this means for Peak shareholders. Let’s assume Peak earns 1.5% on all loans done on Cubeler (again, the percentage that the company earns on the loans has not yet been disclosed, so we’re just guessing here). With a current annual lending capacity of $240M, Peak would gross $3.6M per year in Cubeler service fees. Now here comes the interesting part. The first two lenders to join Cubeler (other than ASFC) brought a total of $220M to the platform for an average of $110M per lender. There are apparently over 8,000 lenders in China. Using an average of $110M per lender, imagine for a moment what Peak’s revenues would look like with 10, 20, 50 or even more lenders on the platform."
This is true and don't forget a $25M EBITDA projection sent this thing to 20 cents fast before they retooled the company direction and the stock took a beating. $25M times a PE ratio of 20 gives you 500M or about a 60 cent per share valuation. I think realistically we can get there in under 2 years and possibly faster. Add to that a TSX/NASDAQ dual uplisting and the sky is the limit. Anyone who wants to take a measured risk right now should be buying those 3.5 cent shares...very soon that will look like the buy of the century.