From yesterday's call some random thoughts.
Solid performance by the Company and cleared up the maintenance issue, which was a concern to many. With Covid and the changes in management, Avid executed. Solid B+ on beating estimates.
Nick- First call and only on the job 30 days but he did seem to lack enthusiasm. Probably first investor call, even though it is a small community so performance seemed spotty. Major fault was saying expansion would take 2 years. If one reads any of the prior presentations, Avid says they can expand quickly and that is a major advantage. No reason to lower the accountability bar. A grade of C for Nick.
Dan Hart CFO a grade of B-: Most understood the revenue pieces but how many times did he note don't try to extrapolate from Q1. Dan, most analysts figured that out.
Understood about keeping guidance constant, but with the new additional $20m announced, hard to understand why guidance would be flat. I'm sure saving some for the next quarter.
What was incredibly positive was finally confirming that capacity could be $120M annually and that the build out could have $250M achievable. That is good news. Still thinking they are being too conservative on the margins. Using the 7x Sales metric, that gives us price targets of $15 and $32. And we all know the objective is for a sale. Add a $10 premium and a pretty good return for investors at some point.
Tim of BD seemed more confident and they are starting to bring in the deals with expansion and new business partnerships. You get an A, Tim.
Good questions from the analysts and they even tried to lead the discussions. The team shouldn't use that to hype, but no reason to downplay, either.
Some profit taking today after a good 3 month run but we should be trading back in the $10 range until we get some additional contract information.
Avid has turned it around.
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