CLST Holdings Inc (CLHI)

[Renegades17]

Valuation perspective



At the current price, CLHI/TDS is valued at ~$6.25mm. Apply a 10x multiple to that to be conservative to get to the implied value once TDS officially takes over (ie. additional shares issued to TDS to obtain a 90% pro forma ownership) and it's still only a $62.5mm market cap. The post-money value for the funding round in August likely was at least $200mm if not significantly higher given ZoomInfo's comparable valuation (and TDS does more than ZoomInfo given its various data management businesses). This also ignores the US B2B acquisition (seems like a game changer) and the other one announced on Twitter (which could generate up to $80mm of revenue by the end of the first year according to management).

Profit taking is just a natural consequence of the recent move and the lack of a PR that explains the company and its plans. Perhaps they're waiting not just on OTC markets, but to close the second acquisition before opening the curtain and unveiling the story in greater detail. I can only speculate like everyone else. Holding patterns are frustrating, but the fundamentals only continue to improve.

I owned a lot prior to yesterday and was fortunate to buy a little more sub $0.20 thanks to gift prices from sloppy trading (and the flash crash that seemed to occur).