Post by
JB5678 on Feb 11, 2021 12:18pm
MKTY Undervalued
This seems very undervalued compared to peers, and it seems the "market" hasn't caught on yet due to perhaps being on the OTC. Even though it has run up a lot in the last few months, I could see it going up 2-4x by the end of the year.
Their instruments business is pretty solid, earning ~70% gross margins, while also earning close to $2m in operating income last year. Some was due to a large Air Force contract that won't be a regular occurence, but in my view that business alone is worth $3.00-$3.50 per share.
The real gem is their EcoChain subsidiary which is a low cost crypto mining play. When compared to RIOT and MARA, it seems crazy undervalued. Both of those companies have market caps in the $2.5-$3B range, while MKTY is currently valued at ~$50m. While both of those companies are crazy overvalued in my view, even with at 75% haircut, MKTY is still far behind. MKTY does not have quite the same mining capabilities they do, but perhaps they have 30-50% of the capacity MARA and RIOT do. Even under conservative assumptions, MKTY should be at least $10/share in my view.