Short pitch:
– Bear thesis – about $80 million of fairly ordinary-looking acquisitions over 2 years, now valued at $1bn+.
– CRGE positions itself as a growth business in the EV charging station, however, most revenue is from declining low-margin telecom M&A.
– Negligible revenue from the actual charging stations.
– Pro forma revenues are shrinking, no profits.
– The company has a history of chasing various fads (Internet of Value, CBD, and cannabis markets) and is run promotional management.
– Risks: expensive borrow, recent investments from reputable shops.
Valuation:
– CRGE was assembled for about $80m, with less than $30m of that in cash.
– $17.5m million has been written off, leaving $60m for the rest.
– That $80m now trades at over $1bn.
Exp. gain: Not specified.
Full CRGE write-up (free guest account required):
https://valueinvestorsclub.com/idea/CHARGE_ENTERPRISES_INC/4359123967