I wanted to write a small note on this, as I just checked up on EVR Holdings (LON:EVRH) and saw that the share price crashed today! Unbelievable, over 16% down, what is the cause for this fall? The company now has a valuation of £162mln and is now at 13p although the most recent placing of shares was at 16p. The average review on the Oculus website has dropped to 3.7/5, but it appears that the bad reviews are more around the app not being available in countries around the world / complaints about the performances not being free.
It’s still very early in the cycle of VR, and although MelodyVR is an app that stands out, VR still has to become mainstream to justify a valuation of ~ £200mln (16p). I have no doubt that eventually it’ll get there, but right now it’s not. MelodyVR will need to be released on other VR devices first to have a better chance at generating revenues at an early stage. The PSVR has an installation base of over 2 million; and if MelodyVR can be launched asap for PSVR as well as for other devices, revenues could come sooner rather than later. I’m sure the makers of MelodyVR are aware of this, and are trying their best to release the app on other platforms and in another countries as quickly as possible.
Look back on the past week, it looks like the company’s timing on raising cash was perfect; it now has the cash it needs to continue expanding and can now ignore the see saws of the share price.
As with all share price crashes though, this may present a buying opportunity for the patient investor. However, this share definitely looks like a buy and hold to me – no quick wins here I’m afraid.
As always though, please do your own research before buying/selling this share; the opinions above are only my personal views and should not be considered as advice.
