RE:Cash
RusticHit wrote: How much Cash do they have on books to survive with this Water mess ???? or they can raise more here looks like 5.30 is last support before slipping under 5 ,,,,
They had $1.5M at EOQ but A/R were at $20.5M and I expect much of that to have been brought into the coffers, not to mention they have access to debt if needed. No raise needed and no need to panic. I expect this cost overrun may not amount to much more than the 15% contingency that the company planned for in the original plant 2 construction economics.
in terms of where the stock price goes, the weakness continues due to overall negative market backdrop and a loss of credibility in the company's ability to execute toward their aggressive guidance. It's plausible the market could revalue Verde toward a p/e range of 6 - 8 (ignoring the growth potential entirely) and wait for earnings confirmation to begin a stair step higher re-rating in 2023. I've read that Cris believes the stock price is too low now and my response would be "this is what happens when you over promise". The market doubts the growth and execution claims and applies a more conservative valuation.