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Argo Corp V.ARGH

Alternate Symbol(s):  ARGHF

Argo Corporation is a Canada-based company. The Company is a technology venture delivering the vertically and publicly integrated city transit system designed to augment public transportation and create a network of intelligently routed vehicles that work together to serve and scale to the needs of entire cities, putting people in control of their mobility. The Company’s solution integrates custom software with vehicular hardware to create a network of intelligently routed vehicles that work together to serve and scale real-time to the needs of entire cities. The Company’s mobile application delivers on-demand, door-to-door service that is fully integrated with existing transit lines and systems. The Company partners with cities, transit agencies, and governments to increase ridership to existing public transit systems and put people in control of their mobility.


TSXV:ARGH - Post by User

Bullboard Posts
Comment by sampoon Jun 04, 2020 11:28am
202 Views
Post# 31111689

RE:Android App Reviews

RE:Android App Reviews

StockAudit,

I think you need to look at this from a valuation standpoint right now. The concept and business model that FD is trying to make work is admirable and hopefully will eventually take off.
I bought in back in mid-May before doing my DD, as I believe the TaaS industry will indeed transform the way we live. However, after looking at revenues (2019 Q4 is $250k) -- and doing a quick calculation on market cap (now at 1.13B CAD), it is really difficult to not think that FD stock is WAY out in front of the realities of what their business is doing. As a result, I have taken some profits and will continue to monitor this from the sidelines until valuation comes back to something more reasonable.
I believe others here have said, do you own DD, and I echo their advice.
 

Some numbers for you to noodle though:
UBER: Market Cap: $64B     2019 Revenue: $14.1B    MktCap/Rev Multiple: 4.57
LYFT: Market Cap: $10.6B    2019 Revenue: $3.6B      MktCap/Rev Multiple: 2.94
FD: Market Cap: $1.13B       2019 Revenue: $250k      MktCap/Rev Multiple: 4,520

Remind yourself that neither UBER or LYFT are currently profitable and that both are investing heavily in autonomous driving -- which most investors will tell you are their paths to profitability.

Even with a growth trajectory of 100%+/year, I still cannot get behind FD at current valuation.

Hopefully this helps shed some light on the current valuation for you.

Regards,
Sampo

Bullboard Posts