Post by
tamaracktop on May 29, 2023 10:51am
The market is discounting based on past returns on cash
Exro has spent millions to get to where it is today.
Much of these expenditures were infrastructure investments that had absolutely no expectation of generating immediate returns at the time.
They were long-term investments .
The world class facility in Calgary wasn't cheap.
The result of these expenditures is that Exro has a distinctly negative return on both capital and assets.
The market is discounting the new cash as if to expect more of the same
There isn't going to be more of the same.
The capital-intensive heavy lifting has been done.
Exro is now in a position to allocate funds as it begins to report significant revenue gains.
The market will associate the company's use of cash with tangible Increases in revenue and cash flow improvements.
The market will stop thinking of the cash on hand as being dilutive.
Exro's price-to-book multiple will expand a few points.
An expansion of 4 points in the price/book would put the stock in New highs territory at $3.14.
Comment by
skupper on May 29, 2023 11:29am
The 3:10 to Yuma is finally in sight ???
Comment by
tamaracktop on Jun 05, 2023 1:13pm
May 29th I wasn't suggesting this would occur in one week.
Comment by
TeamEddie on Jun 05, 2023 8:52pm
The "market" what market these guys do zero promo how the hell know about them? These guys act like a company that is generating revenue and have no need to promote themselves. IR fail Sue oblivious to the realities of being a penny stock - without promotion how do they expect people to know of the play