Catasys Inc (CATS)

[ejobkar]

$90 million in REVs next year!

"Catasys (CATS) had some pretty interesting guarantees in their loan documents with Goldman Sachs. First off, they have (and this is written in the loan docs) guaranteed that they will do $90 million in revenue in 2020. My guess is that number could very well be where initial guidance for next year comes in, when it’s announced in November. Guidance of $90M will allow CATS to meet the street and have them raise numbers every quarter, which is the Company’s unspoken goal. Eventually, I suspect they come in at around $120M for the year, if not higher.

Secondly, CATS also guaranteed that, in the 12 months for which books had closed, prior to the GS financing, revenue was at least $29M. This means they are on a pace for around $10M in the third quarter, which should mean their target of $35M remains doable. These two guarantees should cause the large short position to reconsider their stance, one would think. But, so far they have yet to blink."

https://tailwindsresearch.com/2019/10/keeping-calm-in-stresa/