Sphere 3D Corp. (ANY)

[Hugodrax]

Here's a lesson for you.

Just to give you some insight into the type of thing a investment pro does, or shoud do.

A retail investor says "wow, HUGE deal" "$20 Million absolute floor!!" etc.

Now a pro might do something like the following:

1) Think hmmmm, that education service center concept sounds government related

2) Government documents and entities are generally available to the public, either in paper form, electronic, or via freedom-of-information act requests.

3) Find out that ESCs fall under the Texas Education Agency

4) Learn that the TEA has a division of financial compliance

5) Learn from the Division of Financial Compliance that every ESC must file audited financial statements every year

6) Get a copy of said financials

7) Look at the detailed financials for ESC Region 6

8) See how much revenue ESC Region 6 generates

9) Carve out the "business-type activities" from things like curriculum and staff development

10) Obtain a detailed breakdown of the "business type activites", and carve out things like driver education, cooperative purchasing, and internet pipe, and be left with "computer services"

And learn that this was a $1.38 million revenue business for ESC which generated $292K in operating income. Basically the P&L of your average McDonald's franchise.


So sure......maybe this is a massive deal and gumdrops will rain from the sky. Maybe not...