willow_hiller
Well-Known Member
Yep. Looks like I was able to speedily edit before you quoted my post. I don't know why Barrons called it CRIS several times in that article.
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What other tech stock to consider?
- Thread starter Sanny
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Yep. Looks like I was able to speedily edit before you quoted my post. I don't know why Barrons called it CRIS several times in that article.
bkp_duke
Well-Known Member
I don't know enough about the company to know if this 60-70% pop today still leaves enough upside to jump in, or if I would just be chasing the money. I think I will sit this one out.
How can you calculate market cap for the merged entity of SPAC + company just based on the SPAC's share price? Obviously other pertinent information is missing...
willow_hiller
Well-Known Member
I was just about to ask this. If the float remains the same, a ~$600 million market cap for currently owning 800 DC fast charging stations doesn't sound too bad.
EDIT: Found the SEC filing: https://www.sec.gov/Archives/edgar/data/1821159/000121390021003603/ea133683-8k_climate1.htm
So that sounds like a float of 195,800,000 shares, which at current market price of $21.12 would mean a market cap of ~$4.1 billion. Does that math checkout?
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Someone just 'liked' this older post of mine, so I'll add something. One of the ways I analyze early stage companies is to see how much cash they have relatively to burn rate to estimate this bankruptcy risk. It's pretty simple, just look at the last few periods of their income statement, and get a sense of the monthly or quarterly operating loss. Factor in any expected operating loss reduction as they grow. Divide the cash by this amount and that gives you the number of months or quarters of cash the company has. Now take into account the ability for the company to borrow or fundraise.
I use this all the time for judging private companies, and we are seeing some pretty early stage public companies these days, so also applicable.
You can’t. You have to dig into the details of the merger agreement. It is complicated since the original SPAC investors typically have various preferences like warrants that they might exercise. And then often the SPAC money isn’t enough cash for the newly minted public company so there is a PIPE fundraiser coincident with the merger, so, lots of pieces to pull together. Usually the is an investor presentation (PowerPoint) which lays all this out. You can often find that by looking at the SEC documents (Edgar search).
willow_hiller
Well-Known Member
Found the investor presentation for the SPAC here: https://www.sec.gov/Archives/edgar/data/1821159/000121390021003603/ea133683ex99-3_climate1.htm
Most fascinating part for me is how they're installing Tesla connectors:
Finally, a company that gets it. Why would you build a charging network and NOT include connectors for by far the biggest number of EVs?
My question on this and all other charging networks is, do they have a path to profitability? Charging network are notorious for being money losers.
My secret hope is that everyone (except EA of course because they'll refuse just because) eventually puts Tesla connectors in and I don't have to buy the CCS1 (when it comes) or Chademo adapter.
willow_hiller
Well-Known Member
Yeah, the financials look a little bleak. If I'm reading this right, they're not expecting profit until 2023, and not expecting positive free cash flow until 2026. And just a disclaimer, I've got absolutely no cash to buy into this SPAC. I'm just super bored at work right now.
I'm skeptical of these charging network companies being that profitable. Most people can L2 charge at home, work, or where they park their car at night. I have used a supercharger maybe 10 times since I got my car. I know plenty of people live in apartments/condos or are on the road a lot but I just don't see there being huge demand.
This is why it has made sense for Tesla to build out their own Supercharger network, as a way to improve the value proposition of the cars they sell, as opposed to a profit center in and of itself. Perhaps some businesses would be willing to subsidize fast chargers, but would this be enough to justify a relatively high stock valuation?
Yes indeed, and maybe that's why Tesla hasn't come out with a NA CCS adapter. They could see where this is heading.
ByeByeJohnny
Active Member
I have no money in it and it has no real relevance to Tesla or evs but the short squeeze that never really happened in Tesla may actually be happening in GME (Gamestop) right now. It's a highly entertaining story if you've been following along on Reddit and elsewhere. Can the retail 'investors' really stick it to the big guys?
Oh wow, I saw the rumours about this but it's hilarious that it's actually happening.
Piney999
Member
pz1975
Active Member
Haha just looked at this and it's halted now - rise is parabolic at $72, up 69% today (no joke).
ByeByeJohnny
Active Member
Well there are supposedly more shares shorted than are in the float so while it might seem like a good idea I'm not sure I would try it.
It's halted at least twice the last few minutes.
It halted immediately again after the restart without a circuit breaker justification this time. It's always interesting to see when blatant manipulation is taking place.
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