TSXV:GDNP.H - Post by User
Comment by
dileas48son Nov 26, 2020 6:49pm
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Post# 31986070
RE:The stock is in lala land
RE:The stock is in lala land A few thoughts
1) I do lean to the opinion that the stock price is ahead of itself, but I thought that at $0.45 too so good thing I didn't sell then to buy back in on a drop
2) Don't confuse revenue with earnings. GDNP does not have positive earnings yet. Perhaps, if the 2021 revenue projection of 24 million comes then positive earnings are a possibility. Perhaps $0.02 - $0.03 / share is possible Implying about a 15% eps margin. Using the 12-15x earning one could justify a $0.36 SP (based solely on this metric alone)
3) This is clearly not trading on fundamentals right now. I'm certain there's some FOMO happening as well as the reasonable expectation that Paul is going to drive a lot of value for this company.
4) This is unlike all the other venture plays I have owned in the past. Here there is a clearly identifiable business with actual revenue and a comprehendable business plan that seems likely to turn a profit once a certain volume tipping point is achieved.
5) How traders treat this stock over the next theee months will be quite interesting.
I keep thinking it will pull back and close significantly lower but it just doesn't happen.
PlasticOno wrote: Market cap at 80m at current level. Even if GDNP had a good Q4 it could turn out to be at 16-17m revenue for the 12months. Valued with a revenue multiple nearing 5 times is utter nonsense. And there is a possibility of another offering or something of that kind with considerable dilution. Even to grow the company at max speed makes sense longterm if they want to become the "Amazon of bioplastics" the stockprice doesn't make sense at this point.