Hi all, I’m new to Trading212, but have been an active investor for some years.
I’ll post this DD of a pennystock I’ve been following to see if this comunity can add any valuable insight that makes this a prefered place to do DD ( seems a bit shallow in here ).
Volcon ( $ VLCN ) is a US, Tx based electric sports and utility vehicle producer. They launched an electric motorsycle last year and delivered 75 last year, the sales price is about $8000 a piece. They also launced a smaller motorbike this year, and open sales for their 4x4 utv / atv. The later they have secured 1750 preorders for, they are possible to cancel. They have 75 employees and a global distribution network. Currently there are no EV companies in this segment of the market.
They did an IPO last fall, priced at $5.5, valuing the company at about $60m. Today the stock price is around $1.5, and it is valued at $36m. Some analysts that did some work around the IPO estimated the company value to be $100m if they applied normal startup valuation.
The float is around 16 million shares, with the rest held by insiders. The insiders added at higher prices, as the price dropped from $17 and down to $1, before forming a diamond bottom and bouncing twice.
They have a high cashburn, and they’re probably affected by the global inflation and supply issues that all other companies are affected from. But currently the production is low and it ought to be managable. We could face an IPO on this side of Christmas, but I’d assume they would want to publish a string of good news up front.
Recently some youtube channels did present videos of som of the products, so they seem to target the younger generations of buyers, and in that way has a long term plan to build a future customer base.
The book value is 2x, while the US auto maker industry is at 2.6x.
There is one analysis covering the company with a $6 target, it is a bit dated.