Q: Hi 5i
I think I'm the first to ask about Xanadu. I'm tempted to buy it because it shares the name with Rush's 11 minute opus from A Farewell to Kings (pretty good album title too in light of this weekend's protests). But before pulling the trigger I thought I'd see if its on your radar yet.
Thanks, Geddy I mean Greg
I think I'm the first to ask about Xanadu. I'm tempted to buy it because it shares the name with Rush's 11 minute opus from A Farewell to Kings (pretty good album title too in light of this weekend's protests). But before pulling the trigger I thought I'd see if its on your radar yet.
Thanks, Geddy I mean Greg
5i Research Answer:
Xanadu is going to get a lot of buzz as a "Canada" quantum stock. It starts out with close to $300M cash. But........it is not expected to see material revenue until 2030. We would also note that 88% of the SPAC investors opted to redeem their shares upon the deal, rather than take public shares. Closing is expected March 26. It is hard to endorse any quantum stock on fundamentals. There is a lot of hype and expectations. US names have rolled over this year, with some down 40%. While we do not want to disparage the company, which has good backing and smart people, we really do not think it is the type of stock market backdrop for this one to bust out of the gates upon listing. We think investors will have lots of time on this one.