Mogo -- screaming buy at these levelsInteresting post I saw on Value Investors Club. Totally agree with the comments. I have been adding big time to my MOGO position. Will see $15 and higher again...
Not a ton has changed here other than our view that Coinsquare is probably more valuable today than it was 7 months ago.
On a very simplistic level, MOGO shares trade for around $5.50
$5.50 x 70m s.o. = $385m
Even at a 20% discount to Coinbase (COIN) EV/Sales, Coinsquare is worth $5.00 per MOGO share
Coinsquare, one of Canada’s leading crypto platforms of which Mogo owns approximately 39%, increased assets under custody to approximately $859.0 million at the end of October. Q4 results for Coinsquare should be off the charts given the momentum that crypto caught in October.
Investors are paying next to nothing for one of Canada's leading and fastest growing Fintech platforms.
What is that business up to?
• Mogo’s total member base increased by approximately 64%, from 1,074,000 to 1,766,000 members as at Sept 30, 2021.
• MogoCard transaction volume was up over 915% year over year.
• Payment processing volume increased 65% year over year to $2.4B.
• MogoWealth ended the quarter with assets under management of $291.4 million
How is the balance sheet?
MOGO ended the quarter with combined cash, digital assets and investments of $64.3 million. One of MOGO's holdings recently filed to IPO as well. There is a modest amount of debt.
Core MOGO will do $70-$80m of revenue in 2022. What is this worth? The market is saying its worth almost nothing...