"Adomani, Inc. is engaged in designing, manufacturing and installing electric and hybrid drivetrain systems for use in new school buses and medium to heavy-duty commercial fleet vehicles. The Company also designs, manufactures and installs conversion kits to replace conventional drivetrain systems for diesel and gasoline powered vehicles, electric or hybrid drivetrain systems. The hybrid drivetrain systems are available in both an assistive hybrid format and a full-traction format for use in private and commercial fleet vehicles of all sizes. The Company's product offering includes transit bus, cab-over-engine trucks, walk-in delivery van and shuttle bus. Transit bus offers a range of models, including EV250, EV300, EV350, EV400 and EV450. Cab-over-engine truck is built for a variety of logistic needs. Walk-in delivery van is a commercial vehicle. Shuttle bus is built with a hybrid drivetrain." Adomani (ADOM) Market-Cap: $19,5M Price 0.27 SharesOut: 73,5 M Presentation https://adomanielectric.com/wp-cont...i-Corporate-Overview_Shareholder-2020-v.8.pdf Bulls Take Charge of Adomani Inc (OTCMKTS: ADOM) https://microcapdaily.com/bulls-take-charge-of-adomani-inc-otcmkts-adom/126287/ Currently trading at a $17 million market valuation ADOM is an exciting story developing in small caps; the Company is fully funded moving forward with solid financials and they have been around for years and used to trade on the big boards. ADOM operates in the booming EV space and is emerging as a revenue powerhouse in small caps reporting $12.6 million in sales for the year ended December 31, 2019 representing a more than 100% increase from the year before.
ADOMANI All Electric Logistics Van Powered by ADOMANI All-Electric E-Trikes All-Electric School Bus Powered by Adomani, Built by Blue Bird
Interesting business model. They are sending vehicles to China to be converted. I suspect this is to do the conversion development work, with conversion kits being installed in North America at some point in the future. I don't see how this can scale sufficiently to be interesting. If they could convert 10,000 units per year and make $50,000 PROFIT per unit, that would be a half billion. That would be amazing for a company with $17M market cap. GM only sold 16K Bolts in 2019 and they lost money on each unit. There is also the problem of scaling to service a fleet that size and what of design problems, defects, recalls, battery failures, battery fires, etc? What do you suppose are the odds of these Chinese conversions being problem free? My take is, they could succeed and I hope they do but this is a niche company with no chance to break out so the up side isn't high enough to justify the risk. Here is a brutalist evaluation: Best case: $100M company converting 10K units per year within 5 years That's a 6x gain, if they don't raise any additional capital, but there will definitely be plenty of dilution, if they are to scale. Real world gain is probably closer to 2x but let's pretend they can scale without additional cash.... For even odds, they would have to have a 1:6 chance to succeed. I put the odds closer to 1:25. The risk/reward doesn't work for me but maybe my numbers are too grumpy?
ADOM is a good short term play because of its very low valuation , the current EV hype could drive this stock toward 2 dollars or even higher . Nobody thought that Tesla would run to $1300++ but in these bubble markets everything is possible . Potential in Adomani Electric...07.07.2020
