Post by
tamaracktop on Jul 05, 2022 3:58pm
Riddle me this
Why is the consensus target for Greenblane $2.46, while the consensus for Xebec is $1.94?
And why is Greenlane worth $102 million today while Xebec is worth $125 million?
And why has Xebec traded at a higher nominal price than Greenlane for the last 4 weeks?
And why did Greenlane make a new low today, after its most recent on June 17th, while Xebec made its low on June 14th and hasn't traded again there since.?
And despite all this, how does the consensus target for Greenlane imply a market cap of $370 million while that of Xebec implies a cap of $300 million
I ask again, "why is Xebec worth $23 million more than Greenlane today?"
It's because the market thinks Xebec is worth more than Greenlane.
The market is smarter than the analysts.
If Greenlane hits the consensus price at $2.46 it will be cap'd at $370 million.
Xebec will be worth more than that.
At $400 million Xebec would be ~ $2.60.
When Xebec approaches $2.00 again, every analyst and his brother will raise their targets.
Comment by
tamaracktop on Jul 05, 2022 4:42pm
The stodgy old TSX composite today trades at 1.81X book value, and at 1.74X trailing revenues. At 1.81X book value Xebec would trade at $3.38. At 1.74X trailing revenues it would trade at $1.62. The average of these two numbers is $2.50.