CLHI- Should re-rate a lot higher
Market cap is still only $3.3mm compared to some other reverse merger plays that have market caps of $12mm with no merger partner. There are only 24.4mm shares outstanding and the free float is likely at most 10-15mm shares. The merger partner in this case, The Data Source (TDS), has been confirmed by Synergy and is participating in the most exciting areas of technology (data management, AI). By the way, the former custodian, Synergy (also involved with some of the other best performing R/Ms right now), still holds shares in CLHI even after giving up control to TDS! Can you think of another of their R/Ms where that's the case?
Many catalysts lie ahead in the near term:
1. Get filings up to date, which is in process.
2. Close a private financing round. TDS targeted a $37mm raise earlier in the year at a valuation of $1 per share. This was BEFORE ZoomInfo went public. ZoomInfo, the closest comparable, is valued at over $16 billion or 40x revenue. TDS is in high margin, high growth markets with tremendous upside potential.
3. Geographic expansion into the US, which was already announced, but the details have yet to be confirmed. This is a great time for a company like TDS to expand given the number of layoffs and furloughs in the global economy. Great talent can be recruited much more easily than in the recent past.
4. More news on the AI product that is generating a lot of interest from larger companies.
The current market cap of CLHI is absurdly low and it will re-rate a lot higher.
