Why I believe and invested in GRNI will share some of the main reasons I bought GRN and holding strong in 2021.
- Sales pipeline of close to 700 M$. For starters, sales backlog is an official term used to calculate contracts that have been discussed, partnerships, and even purchase orders.
The sales pipeline is incredible, and I believe the Market is rewarding the potential new contracts and orders with Biden and Canada investing billions in Renewables.
- Sales Backlog (run-rate) : GRN's revenue backlog as of Sept. 30th was at 43 M$. I believe the 10M$ contact signed in early December adds to the revenue run-rate for FY2021, bringing it close to 50 M$ (conservative).
If you compare to Xebec, Sales Backlog were around 85 M$ as of October 2020, maybe around 130 M$ for FY2021 with recent acquisiton? More or less, I am not the expert of Xebec but I believe that would be reasonnable figures.
This is one of the reasons I believe GRN has moved a lot recently.
- Their technology allows GRN to indirectly benefit from the transportation restriction and emissions : biogas can be upgrade into biomethane (natural and renewable gas) and be used for transportation (trucks, etc).
- Canada wants to reach new carbon targets, USA also, Europe keeps on cutting their Carbon Footprint : this can only be done by targeting the ones polluting. GRN is the solution in creating this channel allowing carbon neutrality.
- Notable projects, experience, solid reputation.
- SWEN Joint Venture : worth over 125 M$ if to occur, this could be huge for GRN in Europe.
My guess, it can reach any levels in the short term. It will keep jumping a lot. XEBEC has been upgraded to 12,50 $ target price, GRN will probably lay low in the shadow of XBC, but 2021 will be an another awesome year.
Cheers
David