The Luminar SPAC merger is targeting to close in November 2020 with an estimated post-closing $3.3 billion value, with nearly $500 million of available cash on its balance sheet that will come in as part of the SPAC merger. $7100 per unit in 2019, with gross margin rising from only 17.9% in 2019 to 45.6% in 2024, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $148 million in 2024 vs. Product average selling price (ASP) is expected to decline to $600 per unit in 2020 vs. For example, Velodyne reported 2019 revenue of $105 million, down from $182 million in 2017, and accelerating to a projected $684 million in 2024. Securities Exchange Commission (SEC) and as part of investor communications, extensive forecast and operating financial data are released. A key point to understand about SPACs is that in public filings with the U.S. Thus they are shifting more capital into environmental social governance (ESG) sustainability markets, while also effectively hedging holdings they might have in Tesla, which has a Septemmarket value of over $400 billion-a nearly five-fold increase since 2020 began.įollowing its SPAC merger, Velodyne is now a public firm, holding over $190 million of cash and with a valuation of over $2.7 billion as of September 30, 2020, is up from its combined firm announced value of $1.8 billion. Institutional investors are driven to these types of high-growth, high-risk opportunities as they chase another Tesla. So far in 2020, there have been over a dozen such SPAC mergers announced with transportation tech firms-mainly in the electric vehicle area, but with Velodyne and Luminar adding lidar advanced driver-assistance systems (ADAS) into the mix. A SPAC merger is designed to close within 18–24 months or the investors get their capital returned. SPACs are public firms also known as “blank check” firms that raise cash, often $200 million to $1 billion in an IPO that is essentially backing a small team of known investors and executives that use this capital to hunt for a core acquisition of a “unicorn” with a $1–5 billion valuation. While the stock price has since declined from that peak, it still sported a nearly $3 billion value at the Septemclose.Īutotech, or more broadly transportation technology, has seen huge inflows of funds from private firms for several years and in recent months a crush of flows in the public markets largely due to special purpose acquisition corporation (SPAC) mergers. With revenue of over $37 million and profits of $7 million, it has indeed accomplished much in terms of business traction and captured investor support for its position in quantum communications (quantum key distribution, or QKD), which some market research firms forecast to become a $850 million market in 2025, and growing to $4 billion in 2029. QuantumCTek embodies this market as the first material quantum IPO, with its stock rising over 900% on its first day of trading post-IPO in July 2020 on the Shanghai NASDAQ-modeled exchange, hitting a market value of over $4 billion. The quantum market, while still in early stages of developing, has been garnering substantial corporate- and VC-type investments. and International photonics stock indices are available at. The investors looking at public firms in such projected hyper-growth markets are focused on making valuation and stock-buying decisions on “out years.” By that, we mean forecasts in five to seven years rather than the near-term metrics that established firms are valued on, such as trailing or next-year price-to-earnings (PE) or enterprise-value-to-revenue as shown in our Septemupdated photonics stock indices charts (see Figs 1-3). Each is playing into macro-trends in hyper-growth markets that big investors are focused on in auto-transportation (autotech) technology and quantum information. In the last few months, we have seen a fresh $10 billion of public market value attained following nearly $1 billion of capital inflows into just three photonics companies-Velodyne (NASDAQ: VLDR), Luminar (NASDAQ: LAZR), and QuantumCTek ( Shanghai STAR Market: 688027).
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