IB Net Payout Yields Model

Ouster: Priced For Death


  • Ouster trades below $1 despite a building contract revenue opportunity and growing customer base.
  • The company just released new Lidar sensors based on an advanced digital chip improving detection range, precision and accuracy.
  • The stock trades at cash value despite a rapidly growing revenue base and being valued at 1.5x '23 sales targets.

A lot of SPAC deals were disasters, but some companies were just irrationally thrown away due to the stock market not understanding the business. Ouster (NYSE:OUST) continues to build a large order book as the company moves closer and closer to scale Lidar sensor production. My investment thesis remains ultra Bullish on the stock with the company releasing new sensors and cutting costs to eliminate share dilution going forward.
Read the full article on Seeking Alpha. 
Disclosure: No position mentioned. Please review the disclaimer page for more details. 
Update - Nov. 11
Ouster shook off the odd reaction following solid Q3 numbers and the Velodyne Lidar (VLDR) deal. The combined company has over $1 billion in backlog and the upside remains enormous in non-automotive Lidar. A move above the recent highs next week is likely and very bullish. 
Finviz Chart
Update - Nov. 7
As Ouster reported Q3'22 results, the company announced a merger with Velodyne Lidar. The companies are making a merger of equals to consolidate power in the non-automotive Lidar segment and implement massive costs savings in the process. 
  • Velodyne (NASDAQ:VLDR) shares gained 5% Monday morning after the lidar solutions firm agreed to merge with fellow lidar tech firm Ouster (NYSE:OUST) in an all-stock deal.
  • Under the terms of the deal, each Velodyne (VLDR) share will be exchanged for 0.8204 shares of Ouster (OUST) at closing. The transaction will result in existing Velodyne and Ouster shareholders each owning approximately 50% of the combined company, based on current shares outstanding.
  • The combined company is expected to drive lidar adoption and result in a strong financial position, increased operational efficiencies, ​​and a complementary customer base in fast-growing end-markets. The companies had a combined cash balance of ~$355M at Sep-end, and aim to realize annualized cost savings of at least $75M within nine months after deal closing.


Popular posts from this blog

Aurora Cannabis: Deal Or No Deal

C3.ai: Out Of Steam (Rating Downgrade)

Archer Aviation: Promising Developments