Equity Field Notes from temporal sources

[DanWebzster]

AVCT is a SPAC that recently acquired an operating company known as Computex.

In 2019 Computex generated Revs of 90M, posting a net loss of 4M

Most Revs came from re-selling hardware, probably explaining why gross margin was ~28%

The founder/CEO of Computex left after the acquisition.

The principals of AVCT were former executives at Masco. Their expertise is growing and running service companies. The future of AVCT/Computex appears to be as a service provider with improved margins.

As computex stands at the time of acquisition, analysis estimates that the Computex business supports a MC of ~58M.

Until new management transforms Computex into a higher margin business, it may be wise to use 58M as a MC benchmark.