RE:Looking for some insights...Hey Gibbs, EATS has been very good to me, though, a lot less so in the past couple months (!). Selling a little along the way has proved a good move to secure me in the green.
I can't put anymore money into this sector, but the sp looks very attrractive to me below 2.00. I posted a 'back-of-the-envelop' analysis here a little way back where I estimated that the share book value of EATS is somewhere between .35 and 1.10 (.35 if assuming the value of EATS private companies has not increased at all, 1.10 if the value in private companies has increased at the same rate as the public companies). Given news we've heard from the privates, growth is assured, and I'd place the book values at around 0.85 (today it trades at 1.70). So it remains overvalued by ~2x, but that's good value IMO for access to such disruptive growth stock space.
A caveat, which others have pointed out, and that I think is weighing heavy on EATS sp is that the CFO Ravinder Kang has been selling shares, which does not instill confidence. I can imagine he is hard hit by the recent pullback and selling shares is how they get paid, so it makes sense to secure pay. But, exercise DD, as always, with newer small cap growth stocks like this.
The financing that happened a few days ago is a big deal for EATS future. Periodically, selling shares is the primary way that EATS raises cash and this is the first time they have executed that mechanism since EATS IPO. Effectively, it proves that EATS has an ability to raise cash and continue to make strategic investments. On that note, I think we can expect more exciting portfolio companies to soon be added to the list.
Their is no doubt that their portfolio building is fantastic, and so EATS will remain a great way to gain exposure to this space. We know that VERY and GDNP have been exceptional (1bout 1400% ROI). I feel less sure about SIRE (the third public), which was recently added - it remains to be seen and we also don't know the sp EATS got in at. It's not possible to track financials of the privates, but all look extremely promising. Eat Just, Turtle Tree, and Sing Cell are leading the development of bio-technology that will be widespread in the future - maybe the very near future. Despite the cooling off in this sector from its highs, tail winds remain very strong for bioplastics and innovative biotechnologies, and so my plan is to hold my remaining shares long. I suffered through the huge dip in December down to 1.65, which turned around very nicely
A key thing to look out for is the IPO of Nabati land possibly Eat Just will also IPO this year. That will add some transparency to evaluating EATS ROI's. However, by the nature of EATS investing in pre-IPO companies, I expect there will always be relatively high degrees of uncertainty and I think that in this context EATS sp will remain quite volatile and subject to changing investor sentiment regarding the potential risks and rewards of this growth space.