ERD - ERoad. (Transport sector technology)

[BlackPeter]

interesting analysis in NBR. In a nutshell: interesting company, but ways too dear considering earnings and competitive risks:

http://www.nbr.co.nz/article/eroad-v...ew-md-p-159689

[Jenny Ruth]

Hi all. I published another column on my Substack, Just the Business, this morning under the headline: What's gone wrong inside the Eroad business?
I take a look at why Eroad's share price tanked from above $6 in mid-2021, helped along lately by a botched capital raising.
It's still free to read and you can find it here:
https://lnkd.in/grNPFWgU

[RGR367]

Yeah, it's still expensive now that the confirmed IPO price is at 3 bucks. But I'm willing to set aside a small amount just to get to know the company from the start. Just been my way of knowing any stock that I'll be willing to hold long term. Hoping I'll be right ......

[horus1]

I will buy some to get in from the start

[Harvey Specter]

Anyone in on ERoad. Seems to be one of the better IPO's recently. Will it hold up?

[RGR367]

No - far too expensive. Who knows when - but it will crash at some point. That's not to say it won't go on a crazy geo op style upwards ride first.

Crazy kiwi saver funds be crazy.

I was planning to but I let my my funds got caught in the way down ride of XRO instead.

[benjitara]

I've got this stock around 45% overvalued at the moment for my liking and thought a $2 price would have been around about right. For a company with 9 million revenue it's hard to comprehend the current share price. each to their own...

[noodles]

I've got this stock around 45% overvalued at the moment for my liking and thought a $2 price would have been around about right. For a company with 9 million revenue it's hard to comprehend the current share price. each to their own...

Clearly you have been too conservative with your DCF model. I think most people who use DCF subconsciously input the numbers they know will confirm their opinion of the stock. So if in fact you did use DCF, perhaps you didn't really want to buy eROAD in the first place?
DISC: annoyed I missed out on the IPO after my broker suggesting I buy.

[benjitara]

Clearly you have been too conservative with your DCF model. I think most people who use DCF subconsciously input the numbers they know will confirm their opinion of the stock. So if in fact you did use DCF, perhaps you didn't really want to buy eROAD in the first place?
DISC: annoyed I missed out on the IPO after my broker suggesting I buy.

I go on "owners earnings" rather than DCF models... I like the company and sector but can not invest at current levels.

[benjitara]

Originally Posted by benjitara I've got this stock around 45% overvalued at the moment for my liking and thought a $2 price would have been around about right. For a company with 9 million revenue it's hard to comprehend the current share price. each to their own...

Pleased I followed up thoughts. Might be a buy in opportunity if Oregon ever starts producing decent numbers...