Castle Brands Board (ROX)

[Jld3294]

Hey man.

I like the valuation of ROX more here. But still prefer to own it sub 100M market cap.

A lot looks good from a growth standpoint, but management continues not to have a clear profitability target. The adjusted Ebitda that they claim to go off of is not valid because it strips how the millions of dollars they are paying themselves in stock based compensation.

Q4 really shocked everyone too. The growth slowed dramatically. Not sure if that's a trend or a one time fluke?

The management cannot try to say their stock is undervalued because it's at 2X revenue compared to others at 5x. The market now only wants to see the bottom line profit or ROX will continued to get punished.