Post by
greenstocksGL on Jan 31, 2024 2:57pm
A day later...
Sue really threw us a curveball yesterday. Having taken a day to digest, it's still difficult to assess this development. It seems to go against much of what she has been selling for the past couple of years. There are some positives however.
Positives
Everyone complained about the lack of revenues. Now, we have them. Conservatively, 250M for 2024 and I believe this does not include the cell driver. When valuating a tech company with 250M in revs and likely double in 2025, it becomes very interesting.
I've long been a fan of Sea Electric. I believe they've demontrated tremendous progress during the past two years and have been able to make inroads with the likes of Volvo and Toyota (and not under NDA). Hopefully, SEA personnel can take the leads and close deals that Sue and company have been unable to do so. Tony now has very high stakes in the new Exro and it only makes sense that he ensures its success. Maybe SEA will bring business and marketing acumen sorely lacking at EXRO.
The synergies between the two companies is undeniable and their shared tech could make them a major Tier 1 supplier.
Negatives
Easy. Shares shares shares. Dilution dilution dilution.
Being an investor for 35 years, I HATE reverse splits. I'd guess they hurt shareholders in at least 75% of cases. It shows a lack of respect for current shareholders and I can assure you that the precipitous drop during the past day is in large part due to their upcoming RS. The ONLY way that this can be positive is if EXRO is able to combine the RS with significant news and uplist to NASDAQ... with no need for further dilution afterwards.
As for the video presentation, stop doing them unless it's a Q&A. They look so mickey mouse. Additionally, Sue should have taken an extra 10 minutes to clarify many concerns. WHY is UL certification a problem? Exactly what is the hold up? WHY are the NDAs not revealed yet? Exactly what is the hold up? Yes, the merger is important buy that does not mean that everything EXRO has worked for or has promised diminishes in importance.
My rant for 2024...
Comment by
Sarkazoo on Jan 31, 2024 3:30pm
It's not just dilution. We are becoming shareholders of 2 companies instead of one. Us merging together ensures security and profitability. The only dilution we incurred is with the raise that they just completed, was it 40-50 million shares between the 2 companies? We will save on supplies by ordering larger quantities and this move will accelerate partnerships.
Comment by
sorrenson on Jan 31, 2024 5:52pm
So EXRO will save buying motors they dont buy or sell . Thats ludicrous You cant seriously still be buying what garbage she is spewing . So where did they comeup with SEA is worth 350 million ? From its loan documents?
Comment by
Flyer47 on Jan 31, 2024 3:36pm
Good post Greenstocks. My concern now is that Exro can show that revenue we have been waiting for, still has the stock plunging. Revenue of $ 250 million this year should have been big news. Any other news coming up (UL or NDAs) won’t help it either.