RE: New CEOToday 15:46
This was my post on Migi Argo comparison which got a fair bit of interest. Over two months has passed since, BTC has risen $10K so I think it would be useful to revisit it to see where things stand:
'I just took a little look at Mawson (MIGI) for the first time to see if that low mcap is justified... what i found either highlights how overpriced Argo still is or how undervalued MIGI is, or somewhere in between.
Argo mcap $52m, Migi mcap $11m
Migi's revenue for H1 was $18.4m vs Argo's $24m but one is going in the right direction and the other has been flatlining for an extended period. Revenue in August for example was $3.88m vs Argo's $2.93m with power credits unlikely to take the total above Migi's revenue figure.
Obviously it's the debt / net debt position that's in focus as it's a sector that's going to see many going by the wayside in the next 6 to 12 months. It appears Migi have reduced their debt to $24m which compares favourably to Argo's $72m. As recently as May they pulled off a $5m placing (50% of today's mcap) at $2.40 a share, with tons of warrants at $3.23 a share. Argo only pulled off a smidgen more than that in July.
Now the big issue is obviously liquidity. Loss in Q2 alone was $17.6m... cash as of June 30th was $5m. Obviously the bottom line is improving as monthly revenue picks up and debt is reduced which is a big plus. Cantor downgraded the price target to $1 from their previous $12 which sparked the last sell off (down to as low as $0.45). But if you look at the balance sheets as of June 30th Mawson has $55m net assets whereas Argo now has net liabilities (possibly back to neutral following the cash raise in July).
Only spent half an hour so any conclusions I come to will be fairly hollow but as a snapshot I'd argue that Mawson has a higher chance of surviving the next 12 months than Argo and if it were to reach a bull run prior to any radical financing steps needing to be taken it would see multiples of its current mcap.... At a fifth of the price of Argo it looks a punt worth taking at this price.'
Interestingly both company's valuations are essentially unchanged.