RE:Implied updated Valuation
nozzpack wrote: We are currently trading at 3.5 times annual sales.
This CO2 new revenue stream of up to $150 m USD = $200 m CAD will add another $700 million CAD to our market cap.......about $13 per share, elevating the share price to about $16 CAD
This is why I get so irritated by some of Verde's NR's. They fuel rampant speculation and lead investors, myself included, to start making calculations/expectations without all the facts. I'd prefer they just released a NR after they close the first cc sale providing actual numbers. For now, all we know is Verde should hopefully sell $1Mt of product this year. What we don't know is a much longer list and is worth keeping in mind instead of dreaming that this catapults the stock price over $10.
Here is what we don't know:
1) can they sell cc tied just to product delivered or can they sell up to production capacity?
2) there was no mention of the life cycle analysis being completed - this analysis determines the net cc that can be sold.
3) just because some cc go for $500 does not mean we should expect this. This is a marketplace so Verde will likely take what buyers are willing to offer...$80, $150, $500? Who knows? It also seems unlikely it will be a bulk sale.
4) We don't know what Verde will do with this windfall but my guess is Cris will plow these funds into an aggressive discounting scheme right at a time when borrowing costs are inordinately high and soy and coffee prices are still quite weak, hitting farmers particularly hard. Anything not used for that would likely be earmarked for plant 3.
Please don't get me wrong, this is a potentially very exciting development for us longs but we just need to separate reality from fantasy with actual details and hard (not soft) numbers.