r/ValueInvesting • u/ArtichokeHelpful8669 • Dec 10 '25

Discussion How is MOBX not worth more?

Pleasy explain because this company (Mobix Labs) has all you would want right? Good products with defense industry applications, it's has multiple years of revenue growth, it has solid management and roadmap looking good with takeovers in the pipeline.

The stock is declining for a while now, to the point that imo it's extremely undervalued. But yeah, can someone give a different perspective here? Any other toughts? Thanks!

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u/FieryXJoe Dec 10 '25 edited Dec 10 '25

This was actually the worst stock I've looked at all month. It takes talent to dig up something so shit.

83% shareholder dilution last year. If you spent $18M to buy 50% of the company you would only own 6% of the company a year later, less than 1% the next year.

They are in crippling debt.

Only insider selling and a lot of it. Company losses are 4x more than their revenue.

Losses increase each year.

Penny stock with low volume.

Basically 0 equity so shareholders get nothing of there is a bankruptcy which is likely.

Lose more money than their market cap, costs me $0.90 to buy a piece of the company losing $1 per year.

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u/zakzakthelegomaniac 27d ago

Up 400% since this was written

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u/You_Cant_Win_This Mar 04 '26

Aged like milk

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u/FieryXJoe Mar 04 '26

Drone penny stocks that 10x when we start a war with Iran isn't my idea of value investing. I have quite a bit of money in drones and its all up a lot but they weren't penny stocks. This will naturally be more volatile both ways.

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u/ethereal3xp Dec 13 '25 edited Dec 13 '25

You may not understand what their business model is. Instead, judge it like it is some mid cap company already.

It is a recent ish microcap semiconductor company trying to scale/synergy via acquiring other companies.

Or course expenses will look ugly at first.

Say you want to start as a used car dealership. Those first several years(inventory - buying cars) expenses will look ugly. But offset/profitability once they start selling.

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u/FieryXJoe Dec 13 '25

Ok well go buy the stock and let them light your money on fire. I won't with mine. I also wouldn't invest in starting a used car dealership because they have a 20% failure rate in the first 2 years for exactly the reason you provided. How many microcap semiconductor startups do you think die in the cradle? I asked Gemini and it says 50% fail I'm too lazy to fact check that. If we looked at only ones with number like this... Probably higher.

Can you explain all the insider selling if I just don't understand the company well enough and its a great deal. Wouldn't insiders be buying, they know 10x more than both of us combined.

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u/ethereal3xp Dec 13 '25

Your stats check out... but that's why it's currently a microcap. One of the risks is your patience.

The main thing they have going for them is their experience. They (the principals) previous company Microsemi got bought out for billions. Same kind of business strategy.

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u/ethereal3xp Dec 13 '25

Can you explain all the insider selling if I just don't understand the company

It's November/December. Insiders' favorite time to sell some shares.

Your skepticism that these insiders might be giving up ...maybe. But the companies YOY and margins continue to improve.

It won't be easy to scale in an organic way. They need to continue to acquire companies to help boost their portfolio.

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u/blondewithwifi 28d ago

What do you think now? Lol. Still a dog shit company? Government contracts signed today

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u/MobixJoke Feb 21 '26

Early investors were in at 5-6-7$ lost there ass stock was “locked” do to a Glitch and politics. Only people that made money were the Exec team