RE:Abominably Ridiculous Comparisondileas48. I like your reasonable measured approach. I also agree that straght share price comparison of GDNP and DNMR is nonsense.
That said, perhaps you only said it for effect but GDNP and DNMR are not on opposite ends of the spectrum as a Ford and a Pizza Pizza. DMNR's raw materials can be an input for GDNP in the bio-plastic packaging value chain... Both these companies will benefit from the same tailwinds in the industry. I can't say the same for your auto company and pizza company comparison.
DNMR is a far more capital intensive business that will need more scale for profitability but they have a technology moat that is likely more sustained than GDNP. As an investor I like less capital intensive businesses that can scale with a flexible cost outsourcing model. I like that GDNP focuses on / targets sustainable gross margins and maintians competitive tension in its supply chain through a mix of in-house and outsourced manufacturing as well reducing single source dependencies in the the supply chain.
The other thing I'm fully expecting is as we scale, GDNP will get noticed by institutions who are not able to invest in companies of GDNPs current size... the derisking from scale (along with profitablity) and greater instituional investor interest will also help boost valuations.
dileas48s wrote: I have doggy on ignore, for obvious reasons, but sadly I still get his posts in my e-mail feed.
I feel compelled to respond to this (posted below) because any
real long who thinks this is a reasonable comparison is off their absolute rocker. So please don't listen to him. Comparing DNMR's share price to GDNP's is like comparing Ford's share price to Pizza Pizza's. It's meaningless.
Compare assets, compare liabilities, compare capital structure, compare cash in the bank, compare market cap. Don't compare share price.
Furthermore, as I have already posted on this board, DNMR and GDNP
couldn't be more different companies. Not because I think they do different things, but because they have a completely different capital structure and because they have different corporate objectives.
Stop the silliness......
Posted by:doggy123
Date and time:4/8/2021 9:56:18 AM
Text:DNMR 2020 Q4 revenues $47.3 million for the years..............shares at $38.00 .......GDNP revenues should be at least half.....................GDNP undervalued period.................