Exro Technologies Inc T.EXRO

Share price dips, why not to worry

[Exronly]

Remember. Sue said  they are building a facility for low volume manufacturing and will contract out high volume. 

low volume 100,000x$2000 a unit is $2B a year in sales. And the CEO is calling that low volume 

the company is only valued at $500,000,000 today. The profits will be that on low volume manufacturing  25% of 2B is 500m. Normally a manufacturing company trades at 10x earnings
 

this low volume plant, when fully running, should put the share price at 10x earnings which is $50

and as per the CEO that is LOW volume.  I can't imagine what high volume will look like 

I wouldn't worry about a few dips and doodles In The share price.  This is a bargain find and well worth holding and accumulating if possible all in my humble non professional opinion.   

Day traders are trading this stock daily with no consideration of the fundamentals and consequently will push it around for a bit.  Do not worry about it.

[Exronly]

Major Correction in Last post.  Missed numbers by a zero the Low volume plant is 200m a year not Billion. Justifying a $5 share price. The HIGH volume moves it to $50

[TeamEddie]

glad you did not do my taxes lol

[Exronly]

No kidding. That was a major blunder.   

[Exrower]

Curious how you arrived at 2000$ per unit ,  if this exclusively for automotive it’s plausible .  However in the smaller mobility market Sue suggested that it would be priced accordingly and far below 2k

[TeamEddie]

The new facility will have the capability to produce up to 100,000 units per year across all the Coil Driver products with automotive industry certifications

[Exrower]

Thanks Eddie ,  so it’s not likely $2000 per unit , not to question his math haha but it did look good on paper.  

[Exronly]

No question. It's an absolute wild guess   Say they  allocate different applications  40,000 bike motors at a few hundred 200 20,000 bigger motors at 1000 20,000 automotive motors at 4000 20,000 truck motors at 8000 train motors will be significantly higher  100,000 units.     $260,000,000 sales originally used 2k per unit simply as an average