Verde Agritech Ltd T.NPK

Is Verde reasonably priced?

[laurencelefou]

Fiscal Year 2022, Verde is predicting earnings per share of ±CDN$0.87.
 
The number of outstanding shares is 50,581,619 (2022-03-31).
 
Verde is forecasting earnings for FY 2022 of: ±CDN$44,000,000 ($0.87 X 50,581,619)
 
The market cap is CDN$404,650,000 ($8.00 X 50,581,619)
 
The earnings multiple is 9.20 ($404,650,000  / $44,000,000)
 
The question is: will Verde generate enough sales to hit their CDN$0.87 EPS target.

[15Stanmore]

Hello Lauren. Great post (although I have updated the share number to the current 52,150,000 total after the recent exercise of stock options). If you follow the Company's track record of sales and net earnings guidance since production started in 2018, they have consistently underestimated and over delivered - a conservative approach I have come to value and now expect. Accordingly, I have

[GeneralAladeen]

3 things Cristiano Veloso is very good at:  *modest revenue targets *beating revenue targets  *not diluting shareholders for capex or administrative costs EVER!   

[figtrader]

you forgot granting himself outrageously cheap options

[Stupida]

My lad, you are comparing apples to oranges, these options were granted a long time ago when the stock price was pennies.   DO YOUR HOMEWORK, you don't know what you are talking about.

[figtrader]

You do your own homework.  Check the last time what the options price was. You're the one who is sadly mistaken. I am no lad and have been a shareolder for years.

[Stupida]

Dohh, i checked son, your wrongo again. Do you actually know how options are granted and how they work?   Lad has lots to learn From the March 31, 2022 interim financial statement:

[laurencelefou]

As of December 31, 2021, there were 1,244,308 shares + 115,000 that were issued on September 24, 2018 at a share price of $0.61.  They expire on September 24, 2028.  Note 20 Audited Financial Statements for the year ended December 31, 2021. $0.61 24 Sept 2018 24 Sept 2028 $0.61 24 Sept 2018 24 Sept 2028

[canadianbear]

The options follow the guidelines as established with the securities regulators. Although the 10 yr timeline to me is excessive, it has been set as acceptable. In the case of CV and the board, I have no problem with the companies option policy because we are seeing exceptional performance! I have shares in other pubcos where these same guidelines are followed and performance is an utter joke. 

[KirklandX]

Just checked the chart. As of 24 Sept 2018 NPK was trading either side of $0.60. Agreed 10y is excessive, but then again CV had just pledged his personal assets to back the loan to build Plant 1. So very happy with this.  Quite frankly what Verde has done is nothing short of remarkable. To achieve the current scenario with such minimum equity dilution is almost unheard of. As far as I'm

[Stupida]

Therefore when figtioustrader noted: "you forgot granting himself outrageously cheap options" The lad was totally out to lunch or just trolling. Perhaps moonie has another handle. The last options were issued at $7.76 on March 16, 2022 which was very close to then prevailing share price as well as the options prevoiusly issued were close to the prevailing stock price at the time

[topdop]

Shareholders voted to accept Amazon's Option plan (10 year) a long long time ago. So if anything, it's on us. PS: I've been here since BEFORE the IPO. Point 2: options cannot be "created" at any price. There are volume weighted average rules and so when they are granted, the underlying market is controlling the price, not Exec Managemet. That dude know little (or nothing)

[Stupida]

Figtioustrader has been skooled!

[Benedictus]

This board has been a relatively thoughtful and cordial exchange of due diligence and analysis. I'd really like it to stay that way. There really  is no need for mocking or disparaging remarks here as it will quickly devolve into what can be found on most SH boards. In a broader context, many of us longs were frustrated in the past over Cris's overly generous salary and incentive

[Stupida]

  Sorry, i have low tolerance for those who spread misinformation based on actual data.  We can all argue cordially what we believe will happen in the future, but those who wish to alter how history is viewed are bottom feeders in my books.