05-27-2021, 06:32 PM
LMPX - LMP Motors - Growth Monster and Earnings Beat Coming Tomorrow
<!-- SC_OFF --><div class="md"><p><strong>Business:</strong></p> <p>LMP Motors $LMPX 's business model as “Buy, Rent or Subscribe, Sell and Repeat.” This means that we “Buy” pre-owned automobiles primarily through auctions or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates. LMPX Rents or Subscribe” by either renting automobiles to our customers or allowing them to enter into our subscription plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. LMPX then sells its inventory, including automobiles previously included in our rental and subscription programs, to customers, and then we hope to “Repeat” the whole process.</p> <p><strong>IPO and Price History:</strong></p> <p>LMPX IPO'd in December 2019 at 5$ per share and has steadily increased throughout the past 18 months, reaching a peak of $45 earlier this year. It has since retraced in price and is currently trading at $15.8. This retracement is largely due to investors believing revenue guidance for 2021 was overstated based on December 2020 Q4 revenues of 4M.</p> <p><strong>Revenue Growth and Forecast:</strong></p> <p>LMPX reported 10.8m of revenues in 2019 and grew revenues to 30.4m for 2020. Representing a 180% increase in Revenues YoY.</p> <p>LMPX forecasted revenues of 29m to 31m for Q1 2021 representing a 650% increase in revenues from Q4 2020.</p> <p>LMPX full year 2021 revenues forecasted at 535 million</p> <p>Shareholders called out the CEO on these revenues forecasts after Q4 results and the stock subsequently sold off.</p> <p><strong>Q1 2021 Earnings Preliminary Numbers (To be reported after close tomorrow)</strong></p> <p>LMPX quietly released its preliminary numbers last week directly to the SEC.</p> <p>Reporting Revenues of $33m, representing 725% increase in revenues from the previous quarter.</p> <p>Gross profit increased to 6M from 500k the previous quarter.</p> <p>Cash increased of 1.4M to 19.4m through net operating cash flows.</p> <p>These preliminary numbers beat the Q1 Guidance of 29M-31M by 15%.</p> <p>The earnings call tomorrow will prove to shareholders and investors that this company is achieving substantial growth and the the forecasts are obtainable.</p> <p>Guidance for the 2021 year is expected to increase above its 535 million to 570 million+.</p> <p><strong>EBITDA:</strong> EBITDA expected at 4.4% for 2021 of total revenues amounting to 25million which is to be used for repayment of loans on recent acquisitions.</p> <p><strong>Valuation to Peers:</strong></p> <p><strong>CVNA:</strong></p> <p>Market Cap of 44.7B</p> <p>Sales of 5.5B</p> <p>P/S: 8.12</p> <p>Revenue growth YoY: 41%</p> <p><strong>VRM:</strong></p> <p>Market Cap of 5.9B</p> <p>Sales of 1.3B</p> <p>P/S: 4.53</p> <p>Revenue growth YoY: 14%</p> <p><strong>LMPX:</strong></p> <p>Market Cap of 158M</p> <p>Sales of : 33M for Q1 (570M 2021 full year)</p> <p>P/S: 0.27 (based on 2021 revenue Guidance)</p> <p>Revenue growth YoY: 1766% (2020 to 2021 growth)</p> <p><strong>LMPX</strong> <strong>Fair Value based on 2021 Sales:</strong></p> <p>Market Cap: 2.5B</p> <p>Share price: $256</p> <p>P/S: 4.5</p> <p><strong>Used Auto Market Growth:</strong></p> <p>The used car market is booming, making it a perfect time for resellers. The shortage of new cars as a result of the global chip prices has demand for used cars surging.</p> <p>Used car prices have jumped 21 percent since April 2020 and 10% of that came directly during April 2021.</p> <p>This factor alone should drastically increase guidance for 2021 above the 535 forecast. April price jumps and demand surge will be reflected in next quarters earnings resulting in increased guidance.</p> <p><strong>Key Acquisitions and Business Moves:</strong></p> <p>LMPX has been making key acquisitions over the last few months which will help play into the bottom line.</p> <p><strong>LMPX Acquisitions:</strong></p> <p>Hometown Subaru - May 2021</p> <p>2 Dodge/Chrysler Dealerships - April 2021</p> <p>Bachman Bernard Chevy Buick Dealership - April 2021</p> <p>New Ecommerce Website - March 2021</p> <p>LTO Holdings Acquisition - February 2021</p> <p>Atlantic Auto Group Acquisition - February 2021</p> <p>Landed 660M syndicate credit line for use of Acquisitions - January 2021</p> <p>LMPX started off the year with a bang and secured 660m of credit to use towards acquisition's. Which has been put to use over the first 5 months, purchasing multiple auto groups and dealerships. Securing backlogs of inventory and entering into new markets throughout the U.S. These acquisitions will be even more profitable with the recent 10% surge in used car prices in April 2021.</p> <p><strong>Float:</strong></p> <p>LMPX currently has 10.01m shares outstanding of which 4m are owned directly by management/insiders. Making the tradeable float roughly 6m. The lower the float means the quicker the price moves. Institutional holdings is low but I expect it to drastically increase after tomorrows earnings resulting in a even smaller tradeable float.</p> <p><strong>Summary:</strong></p> <p>LMPX will report revenues of 33M tomorrow representing a 725% increase from prior quarter. This will bring back investors who dumped their shares after the CEO was called out for "overstating guidance". This earnings report will beat expectations by 10-15% and Revenue guidance is expected to be bumped higher to the high 570 million range. New investors will be drawn in from the quarter over quarter growth reported on the call. The recent boom in used auto prices and demand will further excel LMPX as a market leader. If LMPX continues to exceed revenues estimates and obtain 550M+ revenue for 2021 its fair value compared to its peers should be at $250+ a share representing a 1582% increase from its current share price.</p> <p>Get in on the ground floor tomorrow before the earnings call. LMPX ran today as investors started to catch on to the SEC filing of preliminary numbers. We should see a 20% + move after hours tomorrow and quick run back to its ATH of $45.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/lFUCK"> /u/lFUCK </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/nltrog/lmpx_lmp_motors_growth_monster_and_earnings_beat/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/nltrog/lmpx_lmp_motors_growth_monster_and_earnings_beat/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p><strong>Business:</strong></p> <p>LMP Motors $LMPX 's business model as “Buy, Rent or Subscribe, Sell and Repeat.” This means that we “Buy” pre-owned automobiles primarily through auctions or directly from other automobile dealers, and new automobiles from manufacturers and manufacturer distributors at fleet rates. LMPX Rents or Subscribe” by either renting automobiles to our customers or allowing them to enter into our subscription plan for automobiles in which customers have use of an automobile for a minimum of thirty (30) days. LMPX then sells its inventory, including automobiles previously included in our rental and subscription programs, to customers, and then we hope to “Repeat” the whole process.</p> <p><strong>IPO and Price History:</strong></p> <p>LMPX IPO'd in December 2019 at 5$ per share and has steadily increased throughout the past 18 months, reaching a peak of $45 earlier this year. It has since retraced in price and is currently trading at $15.8. This retracement is largely due to investors believing revenue guidance for 2021 was overstated based on December 2020 Q4 revenues of 4M.</p> <p><strong>Revenue Growth and Forecast:</strong></p> <p>LMPX reported 10.8m of revenues in 2019 and grew revenues to 30.4m for 2020. Representing a 180% increase in Revenues YoY.</p> <p>LMPX forecasted revenues of 29m to 31m for Q1 2021 representing a 650% increase in revenues from Q4 2020.</p> <p>LMPX full year 2021 revenues forecasted at 535 million</p> <p>Shareholders called out the CEO on these revenues forecasts after Q4 results and the stock subsequently sold off.</p> <p><strong>Q1 2021 Earnings Preliminary Numbers (To be reported after close tomorrow)</strong></p> <p>LMPX quietly released its preliminary numbers last week directly to the SEC.</p> <p>Reporting Revenues of $33m, representing 725% increase in revenues from the previous quarter.</p> <p>Gross profit increased to 6M from 500k the previous quarter.</p> <p>Cash increased of 1.4M to 19.4m through net operating cash flows.</p> <p>These preliminary numbers beat the Q1 Guidance of 29M-31M by 15%.</p> <p>The earnings call tomorrow will prove to shareholders and investors that this company is achieving substantial growth and the the forecasts are obtainable.</p> <p>Guidance for the 2021 year is expected to increase above its 535 million to 570 million+.</p> <p><strong>EBITDA:</strong> EBITDA expected at 4.4% for 2021 of total revenues amounting to 25million which is to be used for repayment of loans on recent acquisitions.</p> <p><strong>Valuation to Peers:</strong></p> <p><strong>CVNA:</strong></p> <p>Market Cap of 44.7B</p> <p>Sales of 5.5B</p> <p>P/S: 8.12</p> <p>Revenue growth YoY: 41%</p> <p><strong>VRM:</strong></p> <p>Market Cap of 5.9B</p> <p>Sales of 1.3B</p> <p>P/S: 4.53</p> <p>Revenue growth YoY: 14%</p> <p><strong>LMPX:</strong></p> <p>Market Cap of 158M</p> <p>Sales of : 33M for Q1 (570M 2021 full year)</p> <p>P/S: 0.27 (based on 2021 revenue Guidance)</p> <p>Revenue growth YoY: 1766% (2020 to 2021 growth)</p> <p><strong>LMPX</strong> <strong>Fair Value based on 2021 Sales:</strong></p> <p>Market Cap: 2.5B</p> <p>Share price: $256</p> <p>P/S: 4.5</p> <p><strong>Used Auto Market Growth:</strong></p> <p>The used car market is booming, making it a perfect time for resellers. The shortage of new cars as a result of the global chip prices has demand for used cars surging.</p> <p>Used car prices have jumped 21 percent since April 2020 and 10% of that came directly during April 2021.</p> <p>This factor alone should drastically increase guidance for 2021 above the 535 forecast. April price jumps and demand surge will be reflected in next quarters earnings resulting in increased guidance.</p> <p><strong>Key Acquisitions and Business Moves:</strong></p> <p>LMPX has been making key acquisitions over the last few months which will help play into the bottom line.</p> <p><strong>LMPX Acquisitions:</strong></p> <p>Hometown Subaru - May 2021</p> <p>2 Dodge/Chrysler Dealerships - April 2021</p> <p>Bachman Bernard Chevy Buick Dealership - April 2021</p> <p>New Ecommerce Website - March 2021</p> <p>LTO Holdings Acquisition - February 2021</p> <p>Atlantic Auto Group Acquisition - February 2021</p> <p>Landed 660M syndicate credit line for use of Acquisitions - January 2021</p> <p>LMPX started off the year with a bang and secured 660m of credit to use towards acquisition's. Which has been put to use over the first 5 months, purchasing multiple auto groups and dealerships. Securing backlogs of inventory and entering into new markets throughout the U.S. These acquisitions will be even more profitable with the recent 10% surge in used car prices in April 2021.</p> <p><strong>Float:</strong></p> <p>LMPX currently has 10.01m shares outstanding of which 4m are owned directly by management/insiders. Making the tradeable float roughly 6m. The lower the float means the quicker the price moves. Institutional holdings is low but I expect it to drastically increase after tomorrows earnings resulting in a even smaller tradeable float.</p> <p><strong>Summary:</strong></p> <p>LMPX will report revenues of 33M tomorrow representing a 725% increase from prior quarter. This will bring back investors who dumped their shares after the CEO was called out for "overstating guidance". This earnings report will beat expectations by 10-15% and Revenue guidance is expected to be bumped higher to the high 570 million range. New investors will be drawn in from the quarter over quarter growth reported on the call. The recent boom in used auto prices and demand will further excel LMPX as a market leader. If LMPX continues to exceed revenues estimates and obtain 550M+ revenue for 2021 its fair value compared to its peers should be at $250+ a share representing a 1582% increase from its current share price.</p> <p>Get in on the ground floor tomorrow before the earnings call. LMPX ran today as investors started to catch on to the SEC filing of preliminary numbers. We should see a 20% + move after hours tomorrow and quick run back to its ATH of $45.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/lFUCK"> /u/lFUCK </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/nltrog/lmpx_lmp_motors_growth_monster_and_earnings_beat/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/nltrog/lmpx_lmp_motors_growth_monster_and_earnings_beat/">[comments]</a></span>Kind Regards R