Vicinity Motor Corp V.VMC

Something Funky

[MrAnswers]

So in the latest news release the CEO states ""We are proud to announce our distribution partnership with ABC, representing an excellent addition to our reach in the United States, particularly as we begin to market our Buy America compliant Vicinity™" So if they are only beginning to market their buy America compliant bus now what they heck were they doing with the Alliance Bus Group for the past few years? I had questioned earlier the validity of their Buy America compliant statement they have been making over the past few years based on a comment the CEO made on one of those stupid Youtube videos and the fact they hadnt sold a bus via federal funding in the U.S. This latest news release makes me question that even more so I really dont think their busses have been buy america compliant the past few years...

[jg75123]

he is talking about the EV bus, not all his other buses.

[MrAnswers]

Read the release, they are talking about all the busses "Buy America compliant Vicinity™ heavy duty mid-size bus, the Vicinity Lightning™ EV and Vicinity™ LT light duty models to new and existing customers."

[5rockies]

It is clear that the company is looking to pump up the price, the problem is there is nothing to offer to support the higher price. Some people still remember the pumping up 3-4 years ago surrounded with acquisition and other speculative rumours. 

[jg75123]

sales will be coming. sales will drive the price. if they land a 20,50,100 bus deal this stock doubles. how hard would that be for them to land a few more deals? not hard. they are delivering EV buses next quester. this is a real thing now.. EV buses will be rolling off the line consitantly very soon.

[MrAnswers]

Based on their track record over the past couple years I would say pretty hard. And they need a deal for a 100 busses just to maintain this share price, at a minimum. Lets say 100 busses gives them $40,000,000 in revenue and we will be generous and assume that generates 10% profit after all expenses so they are currently trading around 75x earnings. In order to command that multiple they need to

[WillmaImhome]

Where are you getting 75x earnings from? I see a price to earnings ratio that makes the company way undervalued . https://money.tmx.com/en/quote/BUS

[MrAnswers]

Well they actually dont have a P/E multiple as they have no earnings given they have operated at a loss for the past many years, so not sure what you are looking at. I was responding to buddies question about valuation and trying to justify current valuation based on potential future revenues; i.e I was calculating a forward P/E based on a few generous estimates. He said they only need to sell 25,

[MrAnswers]

And further to your link that is a negative next to the P/E ratio as theoretically a company operating at a loss cannot have a P/E multiple.