Valuation Thoughts We have seen some exciting news from Verde over the last little while.
Before today's announcement, Management's guidance was 50 cents EPS for 2022 and with a doubling of production in 2023, some were counting on $1.00 EPS for 2023. Now, with a further doubling of capacity announced today, there is an expecation of $2 of EPS for 2023 which makes the current share price of $9 or so look cheap. That said, there are a lot of assumptions inherent in that the $2 EPS. Most notably, the very high price of the product currently relative to historical norms. Are current prices sustainable???
Or you can take a different view that the current EPS is irrelevant because there is a much greater buildout of future production and capacity.
Regardless, what i do know though is that there is a quite a bit of analysis here that a new investor must do before coming to the conclusion that these shares due in fact look cheap. It doesn't matter what I or a small group of investors believe these shares are worth (i.e. much more)-the stock price needs more investors to feel the same to go higher. I believe that message is now starting to get out. I personally don't expect to sell until we go much higher.