RookieInvestor8231 Dec 2020 07:33
RookieInvestor82 finished yesterday with a post that received 50 likes..
I thought it would be a great way to start today..
Thanks you RI82 for a great post
'I come on here to read sensible informative views backed up by data or logic. Yet every other message is a pathetic name calling exercise like a bunch of bored school children.
With ARB let's stick to the facts. BTC is currently around $29,000.00 and in a strong bull run. ARB are making a net profit of around $20,000.00 per coin at current prices. They are mining around 120 a month. Their mining capacity is increasing by 50% from next February. They should be looking at mining 180 BTC a month give or take, 2160 a year.
Lets look at likely profit against the average BTC price:
1) no change: $29,000.00 = £32m net profit per annum
2) BTC average of $40,000.00 = £50m net profit per annum
3) BTC average of £50,000.00 = £65m net profit per annum
Potential profit range on current prices or increase to $50,000.00 BTC of £32m to 65m net. Plus they already hold 178 BTC which is worth £3.8m. So that gives a profit range most likely for the next 12 months of £35m to £70m overall. PE ratio in American tech companies is high. LSE is a boring place mind full of square idiots. So let's take a conservative view and say an appropriate PE to value the company is x 15. That would give depending on the BTC price the next year a market cap valuation of £525m to £1 billion. The current market cap is £100m!
So the actual future growth in this stock presuming a BTC price of $29,000.00 - $50,000.00 should be £1.80 to £3.40 rather than 34p! That is assuming a steady BTC performance over the next 12 months.
Let's play negative. Suppose the BTC price pulls back and averages just $20,000.00. In that case ARB would make a profit of around £21m including the BTC they currently hold. That still gives them a modest PE x 15 market cap of £315m which is a target share price of £1.07 - and that is in a bad year!
As others have said, I do not see how the share price is not going to hit £1 at some point and there is scope to push to £2.00 and above without BTC needed to do much from it's current position.'
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