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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

TSXV:BNXA - Post Discussion

Banxa Holdings Inc > Some Observations
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Post by BCdude on Feb 25, 2021 1:24pm

Some Observations

Nice to see the Dec 2020 financials today, including the dramatic increase in TTV and revenue. I think it's safe to say BNXA has a current annual run rate of $20-$25 million.

Interestingly, if BNXA traded at the same valuation of VYGR it would be ~$56.40/share.

I hate to make that kind of comarison, though, since VYGR is overvalued by many multiples.

I have an accounting background, so s few cautionary notes too:

1) While the cost of sales have been decreasing as a percentage of revenue, the salaries and G&A expenses have been increasing in lock step. Loss from operations is only a little less in 2020 than in 2019. It will be interesting to see if there's a meaningful change in the next quarter, when we are expecting even higher revenues.

2) The listing expenses were offset by a gain on value of inventory + foreign exchange. While these are legal accounting measures, investments and foreign exchange can work against a company, too, and is qualitatively different than actual revenues.

3) The cash flow statement also indicates they are not out of the woods yet, despite revenue increasing by a huge percentage. While part of this can be attributed to the listing expense, factoring that out cash flows were still minus $2.5 million vs. minus $1.0 million in 2019. This was largely offset by $2.5 million in loans during the quarter.

I'm a BNXA investor and plan to hold long term. I comfortable with placing a fair value on the shares at 10x revenues, which I know is less than competitors, but I'm conservative. That would put the market cap at ~$200-250 million. With a fully diluted float of 45 million, that suggests a fair value of between $4.40 and $5.60 per share.

That is my two cents. I agree that we COULD see a much higher share price, since many investors in the current environment won't be inclined to look at the numbers so critically. I wouldn't be surprised to see a share price of $10.00/share this year, perhaps higher.

I only offer my numbers as a check on overexuberance. Feel free to plug your own numbers in.

GLTA
Comment by YoEdwest on Feb 25, 2021 1:38pm
ignoring all the moving parts below the $1.26m loss we saw an 8.4% sga increase over a 54% revenue increase if GM holds at 20% ish and ttv to rev stays at 4%, it looks like they need about $290m a qtr ttv to generate a positive contribution before the "other income/expenses"  expect some expense creep in all the wrong directions which always happens when revenues blow up but ...more  
Comment by StockGuru454 on Feb 25, 2021 2:41pm
you lost me at i"ignoring all the facts below... lol Facts are the worst case scenario...this is a $5 stock, best case scenario $55. Which ever way you wanna look at it it's a win in all directions even before the ridiculous earnings of febuary about to hit The PR.
Comment by Urbani on Feb 25, 2021 2:51pm
BNXA... yes conservative speaking the stock price is undervalued right now in a very bad market... Looks like some people are playing around with share price... really should have been a pop up here, considering ... It would appear that everyone seems to agree that reveunes right now on an annualized basis about $20 -$25 Million It will go higher, but let's just stay here for a minute ...more  
Comment by Vancity1 on Feb 25, 2021 3:00pm
Also Banxa Hodling 158 BTC helps especially if it keeps its course to the moon ahah 
Comment by Averagewhiteguy on Feb 25, 2021 3:36pm
As frustrating as it is to see that share price is being obviously manipulated.  It's good to see the bright side of it and accumulate as many shares as possible. 
Comment by Urbani on Feb 25, 2021 4:02pm
Yes, being manipulated.... and at end of day again.... VYGR up today... right they have marketing Oh well, it gives me some more time to pick up more at a lower price I suppose. I was complaining that I didn't hae enough this morning when I saw that BIG press release...
Comment by rankininlet on Mar 03, 2021 5:42pm
Nice to see the Dec 2020 financials today, including the dramatic increase in TTV and revenue. I think it's safe to say BNXA has a current annual run rate of $20-$25 million. Interestingly, if BNXA traded at the same valuation of VYGR it would be ~$56.40/share. I hate to make that kind of comarison, though, since VYGR is overvalued by many multiples. I have an accounting background, so s ...more  
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