Bullboard - Stock Discussion Forum Banxa Holdings Inc V.BNXA

Alternate Symbol(s): BNXAF

Banxa Holdings Inc. is a Canada-based company, which provides a financial technology platform. The Company’s principal business activity is being a payment service provider to global cryptocurrency exchanges. The Company’s products include On & Off Ramps, NFT Checkout, OpenRamp and Token Listings. It offers extensive global and local payment options resulting in conversion rates up to three... see more

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TSXV:BNXA - Post Discussion

Banxa Holdings Inc > Under Valuation = Opportunity

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Post by rankininlet on Jan 08, 2021 1:06pm

Under Valuation = Opportunity

Financial services sales to market cap factor = 3.14 for industry
Dec Qrt sales 111mm x 4 = 444mm annual projection
Use factor of 3.14 x 444mm = 1.394 billion market cap ( sales to market cap ratio )
1.394 billion / 40.7 million shares = $34.25 per share
OBSERVATION: Current share price about 10% of potential. Easy to see share price increasing 2x or 3x or 5x. Current share price is 90% undervalued to financial services norm.

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Comment by rankininlet on Jan 08, 2021 5:24pm

Maybe I got this wrong. Transactions of $444,000,000 do not equal sales. Sales would be commission on transaction volume. $444,000,000 @3.0% = $13,320,000 x 3.14 = $41,824,800 theoretical market cap. Current market cap is $2.99 x 40.7 mil = $121,693,000. So, share price is ~3x theoretical market cap which means pricing in future growth. So ... we have tipical ...more

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Comment by LFC1973 on Jan 08, 2021 6:09pm

So just a little off on your calculations then..... like 97%

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Comment by rankininlet on Jan 08, 2021 8:03pm

If I was Trump I would deny, deny, and storm the palace. I ain't so full disclosure. My original sales number of $444 million was dead wrong. Commission on $444 million of say 3.00% = annual sales estimate of $13,320,000. Obviously 13mm is not 444mm because transactions processed is not sales, rather, sales is the commission on transactions processed. That commission ...more

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Comment by Urbani on Jan 08, 2021 6:30pm

Not sure about how much you know about PE with high growth tech's? So NC should be like 2.5 cents a share than... Galaxy should be... Telsa should be about...

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Comment by rankininlet on Jan 08, 2021 6:56pm

Not P/E. Sales to market cap ratio. Its a standard ratio. Its available online for every industry. Financial services industry is 3.14 for 2019 which was the most recent I could find. I am a retail investor so don't knock me too hard. Doing my best here. I bought $30,000 worth today at $~3.25 per share.

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Comment by Urbani on Jan 08, 2021 7:33pm

K not familar with that outside of private companies... Banks are 10 times PE And so on... If you look at a public company and you own 20% you pretty much control the Board. Not many more than 20% vote. SO at a 100 million market cap you could have 20 Million and really control the company. Also tech moves fast. Take a look at the PE's there. Putting a private 3.14 on BNXA or anything else ...more

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Banxa Holdings Inc