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Too premature to talk about that
We know nothing about how the private markets are valuing TDS. The recent capital raise likely set a valuation of at least $150mm if not considerably higher (based on the 30mm GBP raise that they had launched earlier in the year before ZoomInfo went public).
If they set a proper share structure at the outset, there very likely won't be a need for any subsequent share adjustments to uplist.
We're still in an information vacuum when it comes to many details, but one thing is certain, the current valuation of CLHI doesn't come anywhere close to reflecting the value of TDS.
I think the filings or a PR are key
OTC traders don't "connect the dots" too often.
Need to correct some sloppiness in the filings too
There were some silly typos and misspellings in the 10q extension filing. Perhaps that's attributable to English as a second language for whomever executed the filing, but that type of thing needs to be corrected.
There's some easy steps like producing audited financials and being more professional with their IR effort that could do wonders for this stock. Hope Ballout figures this out soon for all us shareholders.
Trader behavior on the OTC
Never ceases to amaze me, whether it be selling too cheaply or buying based on FOMO.
Could be a vehicle to enable trading of OTC for UK investors
Just speculating as there are a number of reasons that they might have done this.
Interesting company. I hope they hire a good IR firm to communicate the story well.
Working to increase awareness
Still can't believe the current market cap relative to other deals and the public comps. Obviously that will correct significantly in the upcoming days and weeks.
Never been a pumper, but this one is too good not to spread the word. Facts speak for themselves and looking forward to more being revealed by management soon.
CLHI- Significant updates and catalysts on the way
Eventful Friday for CLHI as TDS, the merger partner, confirmed that they are progressing towards getting listed, which should happen soon. The following are some of the recent tweets (my emphasis in bold):
The Data Source
@thedatasourceuk
·
Aug 14
Updates at TDS. We have been told we are ‘In the queue’ so patience is a virtue! #stickwithit #frustrating #inpatience #thepowersthatbe #nofaultofown #letsfly #tothemoonandback
The Data Source
@thedatasourceuk
·
Aug 14
Also just to mention and any management or employees from TDS can not communicate in a quiet period! #nogames #truth #lookitup #facts #illegal #authorities #weloveyouall #positivity #happy #millionaires #lifechanging
TDS participates in high growth markets like data management, lead generation and AI. Public comps like ZoomInfo and DataDog trade at market caps of $17-25bn! CLHI currently trades at the paltry valuation of $3.3 million. Some other shells that have no merger partner trade at valuation of over $150 million.
CLHI is poised to re-rate significantly higher in the next few weeks IMO.
Agreed
I think more visibility on Wattozz and what it means for Enerkon shareholders could provide a huge boost too. The PRs aren't necessarily vague, but it would help if Ballout would frame the opportunity (revenue, operating profit, orders etc.).
Not what I heard
I never heard of an RS and it really doesn't make any sense until the stock price organically rises to at least $2-$3. There wouldn't be enough float to meet exchange rules and they need to prove that they have the minimum number of shareholders too. At $3, they could do a 2 or 3 for one RS and then it would make some sense.
I've only heard of audited financials and partners presumably buying stock as catalysts to get the share price higher. I think audited financials would really help as it's obvious that the "market" doesn't have full confidence in the financial statements.
So you think queue means SEC filings updated?
Another cryptic tweet, but it does seem positive (particularly the hashtags)
10q and 8k
I thought the results were good particularly in light of the economic backdrop. I'd like to see higher gross margins as that's going to be the biggest driver of value creation in my view, but APF is a drag (that Kent is addressing by using capacity for QCA and Excel). Deluxe had a strange quarter too, but I chalk that up to Covid disruptions.
The PPP ($3.9mm) is really sizeable in relation to the market cap of the company. Once it's reversed, it should get recognized as other income based on commentary I've seen from knowledgeable accountants. That will be an enormous boost to book equity when Q3 results are reported.
Kent indicated to me that he was close to hiring a Chief Accounting Officer (may have already occurred). This is someone that has already been helping close the books and obviously that helped with the current quarter. Good to see results delivered on time, which should help with investor confidence as the road show continues.
I agree with you
Ultimately, whether they release an update today or not won't matter much given the company's potential. That said, it sets a bad precedent when you dangle an update (of some sort) and don't deliver. This is particularly true given how long we've waited.
No need to lecture on "quiet periods".
Need to see the 8-k
Get real confirmation that the Nexology deal closed.
Nice work
Looking forward to tomorrow to see how the stock trades.
Current on filings
And an attorney letter...get those and you too could get a $150mm+ market cap!
I'm simplifying of course, but I guess for OTC traders, it's worse to have a definitive merger candidate in a high growth, high margin business with a share structure that is incredibly accommodating for a R/M.
Strange world.
Stephenson does come from the hedge fund business
Certainly possible that some former buddies are accumulating shares knowing huge catalysts are on the horizon (sorry for using that word, but nothing else came to mind).
The slow play here is unbelievable
Perhaps a UK investment fund is accumulating and the MMs are playing along?
Interesting
I had a rather heated email exchange with IR, but it did end on a positive note. They re-iterated, as has been stated publicly, that they are going to produce audited financials and up-list (said by the end of the year, but that seems optimistic to me, but let's hope).
If you are able to communicate with Ballout
Let him know that they need to improve the tone and method of communication with shareholders. Their approach to IR is pathetic and needs to vastly improve.
I continue to hold given the low valuation and substantial discount to intrinsic value, but they don't make it easy.
Hanging in and anticipating better times ahead despite woefully poor IR.
Mining companies are heavy diluters too
It's an extremely capital intensive business and that means dilution. They may have great reserves, but it will take a long time and cost a lot to develop.
In contrast, TDS is a high margin, high growth and ultra-low capital intensity business. The valuation multiples are accordingly much, much higher.
That's good advice
Tough to do with some OTC tickers, particularly if there's dilution from convertible notes, but if the management is good and the business prospects are sound, holding leads to the best returns.
In this case, the highly favorable share structure reduces a lot of risk and we have a very good idea that the business prospects are extremely good. Data management and AI are huge areas of growth. I've done a lot of work on AI to understand the underlying technology. The application to areas that TDS is involved with is very apparent and will provide a high ROI to their customers. I imagine that there's a lot they're planning with AI that I can't even fathom.
Good to see that management finally responded in the right direction. Hope we get a PR or at least a substantive statement by the end of the week as they suggested. Regardless, I think we'll learn a lot more by the end of this month and get the significant re-rating we've been expecting.
Agree
The anger and frustration is mounting on Twitter. We know management takes notice given they've interacted with a number of posts. It doesn't reflect well on the company to allow the frustration to continue.
Hope we get an illuminating PR soon.
Check out the Data Source (UK) twitter feed
As Hokie mentioned, they don't explicitly state ownership of CLHI, but it's common knowledge for all the reasons Hokie mentioned. TDS also acknowledges its intention of becoming a public company frequently and tags otc, otcqb, investorshub etc. in basically every tweet.
TDS has yet to issue a formal PR that it controls CLHI and this is why the stock isn't already trading at $0.50-$1, which would be a comparable valuation to other R/Ms that have recently gone through a similar process.
Those of us that have been involved for a while know the enormous potential, but we're frustrated with TDS management. They just need to start PRing information to lay out the path to become a public company and all of the positive developments that have taken place recently.
Not a fan of mining businesses in general
But I have to give credit to Ameca for putting out a proper PR to announce the change of control. Simple and effective.
Great points
I don't understand this management team. They could approach information dissemination incrementally and as long as it's in a pubic forum, and not selectively disclosed, there are no issues. Obviously, I don't think cryptic tweets constitute information dissemination.
Your favorite..
TON-j having quite a move. When is CLHI going to have similar move?
Rhetorical question...
Enlighten me
You seem to have a better understanding of market maker signals than I do.
It's puzzling
The stock price is moving on low volume, so I don't care much. I'd like to get some answers to my questions before buying more, but Ballout is MIA from my perspective.
Some basic actions would elevate the stock price easily to $1.50-$2 (applying a very low multiple to current EPS and giving no credit for Wattozz or the other initiatives), but he's been slow to get them done.
Still on track to close the Nexology deal?
If I'm not mistaken, the closing date is supposed to be this Friday. Yesterday's PR would seem to suggest strong confidence that they'll get it done.
Some basic blocking and tackling steps
Like getting the financials audited and presented in a proper format would do wonders for this stock. He needs to get a few things like this taken care of and the stock should re-rate a lot higher.
I've emailed him a number of questions and suggestions but haven't heard a response. Been frustrating, but the stock is extraordinarily cheap, so I will hold.
Took down a chunk of the $0.105s
But I must say, the mindset of the OTC trader never ceases to amaze me.
Frustrated like everyone else with management, and I've expressed it, but the destination hasn't changed in terms a wide range of very high return outcomes from here.
Might be fomo
But it has the same price as CLHI, but with 8x the number of shares outstanding (based on comments from Synergy).
Ballout should get his Turkish partners
To buy stock in ENKS directly. They could single-handedly boost the valuation to dollars per share given the current float.
I'm puzzled by the low valuation, but have a position.
CLHI- Should re-rate a lot higher
Market cap is still only $3.3mm compared to some other reverse merger plays that have market caps of $12mm with no merger partner. There are only 24.4mm shares outstanding and the free float is likely at most 10-15mm shares. The merger partner in this case, The Data Source (TDS), has been confirmed by Synergy and is participating in the most exciting areas of technology (data management, AI). By the way, the former custodian, Synergy (also involved with some of the other best performing R/Ms right now), still holds shares in CLHI even after giving up control to TDS! Can you think of another of their R/Ms where that's the case?
Many catalysts lie ahead in the near term:
1. Get filings up to date, which is in process.
2. Close a private financing round. TDS targeted a $37mm raise earlier in the year at a valuation of $1 per share. This was BEFORE ZoomInfo went public. ZoomInfo, the closest comparable, is valued at over $16 billion or 40x revenue. TDS is in high margin, high growth markets with tremendous upside potential.
3. Geographic expansion into the US, which was already announced, but the details have yet to be confirmed. This is a great time for a company like TDS to expand given the number of layoffs and furloughs in the global economy. Great talent can be recruited much more easily than in the recent past.
4. More news on the AI product that is generating a lot of interest from larger companies.
The current market cap of CLHI is absurdly low and it will re-rate a lot higher.
If we got..
X-Gen's volume, we might actually re-rate to a proper level.
Stephenson let shareholders down again this week. Hope for better the rest of the month.
Lack of volume is puzzling
There's definitely a big discount to intrinsic value. Up to Ballout to make the right moves to bridge the gap.
Holding and waiting...
I hope the "horizon" means next week Hoke
I'm ready for some PRs and filings, not anymore tweets.
Time for Stephenson to step up and issue a PR
I was actually encouraged by the trading. The parabolic moves feel good at the time, but they ultimately create problems for the stock. Controlled accumulation is a good thing, particularly if one has a view that the valuation can be in the dollars (under reasonable circumstances).
A Friday PR would be a great way to end the week. Let's hope they have a good sense of timing!
Puzzled at the lack of reaction
Sure seems grossly undervalued. Added to my position today.
What share count are you assuming to come up with PPS predictions?
I think you meant year over year when you stated a revenue growth target, no?