Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
and pricing power is the reward for sustainable market dominance
if nothing else the cash flow values in Cenkos's model need revising in light of latest guidance on internal forecasts
my point on RNS is that there was lots of new info - and some of which amounted to needing to inform the market officially.
At the least, highly informative interviews. Who knew that Fleet was now in active OEM talks / interest?
Yet more!
The NPV model of Cenkos has yet to be adjusted for the fall in Sterling of approx 10%. Therefore, without altering any other values, all the Cenkos NPV values go up by approx 10%.
Also, for all foreign buyers of SEE shares, the price now is a further 10% cheaper in addition to its fall in nominal price e.g. US purchaser.
Generally with the no profit tech bust aren't we seeing the revenge of the NPV model? What is the NPV of Uber if it never makes any positive cash flows over the next ten years? Answer is zero. That can happen when the hope / speculative dream dies and Uber is understood as a profitless shlepping business.
However, SEE has a real NPV model - especially as a licence based business.
So why have the shares been pummelled?
Here is a clue. Ford's shares down by more than 50% since the start of the year. Broadly based new tech fund ARK Innovation ETF recovered almost 10% last night - but still down more that 75% from its recent peak.
Basically, if you want to know why your shares got beat up, you need to read the FT etc. You wont find the answer on here from the mockers and sadists who sometimes post in derision.
In torrid and horrid times I will only invest in real businesses. So not enjoying myself but believing in my assessment only - which is good
Further,
Cash at half year plus booked Fovio contracts = market cap of SEE [almost]
i.e. nothing for the business prospects - just a break-up valuation.
But then in punters market - who does old fashioned valuation? What is the value of Bitcoin? [energy stock i.e. cost of coal to make it?]
Further, disagree with comments on Cenkos's target share price.
In fact, Cenkos provide a Net Present Value grid with differing share price dependent on the discount rate. Changes in the nominal target share price follow changes in the choice of discount rate or cash flows. At the current share price it is instructive to look at the NPV grid. It shows that the 6.6p price equates to a disc rate of almost 19%!!!!!!!!!!!!!!!!! Factor in the conservatism of the projected cash flows and this is BS - unless you assume that SEE is super super high risk. Changes in the interest rate environment don't touch it. This is just ignorance. But then who reads the news? Just how much macro news is swamping everyone's minds??
Concerning the current share price, I refer myself to the valuation undertaken by Magna who bought a slug of shares at 11p - which given the fall in Sterling now equates to 12p+. Magna knows more about SEE and its product then all of us on here put together.
I also think of SEE as a hedge against the rot of Sterling [courtesy of Brexit etc]. SEE's activities and earnings are not in Sterling.
Comment: This new OEM win is significant as it is the first award win for Seeing Machines in Japan. This win is being delivered through an existing Teir-1 relationship; however, the company is already working with other Teir-1 suppliers and automotive manufacturers in the Japanese market. We believe today’s win is a first step into the Japanese market and that the cost and performance advantages of Seeing Machines software and embedded systems approach, will enable it to win further business with Japanese OEMs. We believe this view supported by the increasing win rate demonstrated by the company over the past two years, with its RFQ win count to 12 through nine OEMs. The ‘cumulative initial lifetime value’ of these award wins now up to A$345m/US$240m which we believe is predominantly based on conservative minimum production commitments for initial vehicle models. However, with actual production volumes usually much greater than minimum commitments, and the technology already being seen on models beyond the initial award win, we believe the likely lifetime value of these awards is already considerably larger. We iterate our Buy recommendation and 20p valuation.
Don't understand this obsession with profits.
Profits happens if they deliver on the Plan. So it is the Plan that matters and the cash the Plan needs. All good
If profits were necessary for a big share price then explain UBER etc. The answer lies in the implicit underlying NPV of UBER i.e. the set of cash flows over the next 10 year period etc etc
As to projecting profits, the business model changes as the business takes off - so artificial assumptions?
Paul M needs the shares above 9.5p average in June - or he risks his 5m shares being lost
I liked the Results. Plan is being delivered and lots of cash
I don't comment on the share price but the NPV model of Cenkos implies a disc rate of conservatively 18%
I could list numbers of new tech businesses whose share prices are down by 90% from peak - or worse. SEE's share price doesn't exist in a vacuum.