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Saturday, 12/08/2018 9:15:41 PM

Saturday, December 08, 2018 9:15:41 PM

Post# of 7213
Don't caught like a fool. Shorting at these prices are nothing but suicide. Company trades at less than 1,5x adj. EBITDA, they're not burning $2M a month as claimed, most of the net loss comes as a result of amortisation which is non-physical and related to the acquisition of Benchmark Builders in 2017. Just look at the Q4 report, almost $8M out of $12M for the Q is related to the acquisition. In the previous Qs the number were much less. So in fact, the company is not burning that much cash, since most of it is NON-PHYSICAL/NON-CASH RELATED. They printed a decent amount of shares, and that sure is a negative, but those are locked up for 6-12 months as stated in the Q. Supply won't hit the market for a while. You can do the calculations yourself, all shares issued has been done at a price at least twice todays price, meaning no one received any substantial amounts of discounts as claimed. Company guides with 75 CrossLayer buildings on-net by 2019, that's $400k pr. building = $30M (remember CL is high-margin recurring revenue) x 0,40 (conservative margin estimate of 40%) = $12M, now one can easily put a 7-8x for a gast growing tech business = $12M x 8 = $96M, that's a fair value of CrossLayer alone, now add BenchMark, JustCom and FTE which does a combined of $420M in 2019 and adj. EBITDA of $36M. With todays Market Cap of less than $50M, you think this is a short candidate? If you do, you're either delusional or stupid. Second, yes they do have a decent amount of debt, but remember $7,5M was paid off earlier in the year WITH CASH FROM OPERATIONS not shares that were printed, as once again claimed by shorts. How do I know? There's a public release about this and it was also fully disclosed at the conference call. Now, company is working hard to refinance their debt, and no debt is due for the time being, company does $10M in EBITDA pr. quarter and can easily service their debt, one denying that obviously don't know anything about financials. So why in the heck, would you short a company that trades a major discount relative to Its peers?

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