P10 Industries Inc. (PX)

[value1008]

Chemist, on that "growth" factor for a co. and its stock-price, that is obviously the ONLY factor that props up a lot of stocks in the market-- most famously the not-yet-profitable biotechs and tech stocks, but also lots of early-phase oil & gas cos., mining cos., etc. etc.

Some of those cos. post huge losses quarter after quarter, and, more importantly, also have a very high "cash burn" rate, which is why they have to keep returning to the market for financing deals so that they can even stay afloat for the next year of operations. Shareholders are strung along on the hope that ONE DAY, SOME DAY, the co.'s drug or device will get approved, gain marketshare, defeat competitors, and the co. finally will become profitable.

Fortunately, PIOE doesn't have those problems of cash-burn and vulnerable "neediness" in having to engage in financing.

PIOE is simply a play on RCP Advisors steadily increasing AUM and concomitant mgmt fee revenues over the coming qtrs and years. I figure that RCP 2&3 will likely increase their AUM by around $750 million in 2018 alone. Probably around the same increase in 2019. And the same increase in 2020. That's, anyway, what they've been doing over the past several years since 2011 (when RCP 2 was inaugurated).

At a certain point--perhaps not as soon as Q3 report but very most likely either by Q4-'18 or certainly by Q1-2019 PIOE's revenues will surpass the non-cash amortization charges and various SG&A and other expenses and we'll be seeing the start of what should be a very health GROWTH in PROFITS.

This would be a much shorter wait for profitability than for all those hundreds or thousands of stocks out there for unprofitable cos. with the heavy cash-burn rates and ever-present threat of more (dilutive, often toxic) financing.

With those repeating mgmt fee revenues for RCP/PIOE, that will be a sign of many good things to come for this co.

I'll be ready to write another S.Alpha article about PIOE at that point.

And who knows, if PIOE/RCP acquires another investment mgmt firm in the next few months, they may jump their revenue growth and substantial profitability even much faster. We would have to see the details, but obviously the CEOs and RCP principals would only jump on such an acquisition if it looked like synergies could make it profitable sooner than later.