GREY:LGLTF - Post by User
Comment by
UnverifiedUser_299116on May 15, 2015 10:28am
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Post# 23732494
RE:Downtrend is what I'm reading from the v.LOY charts....
RE:Downtrend is what I'm reading from the v.LOY charts....I believe this is an overreaction. A couple good points were raised earlier, but I believe the following:
1. Many small companies have delays in issuing financial statements. As someone put earlier, the Company has done a lot recently with foreign acquisitions, a debt raise, capital raise, etc. Put simply, this business does not have the reporting infrastructure to be public. It should be taken private - there is no reason an ~$8M - $9M run-rate EBITDA business should be a public Company.
2. Unless there is something material that is fraudulent that is happening or something out of the Company's control, I would think the financial statements will come out and support the implied valuation at the above EBITDA run-rate.
3. Q4 is not a big quarter for the Company. Results, with the caveat of fraud or something else material noted in (2) above, should not differ from expectations.
I believe the implied valuation is attractive at these levels and perhaps investors will be able to add more should the stock price fall further due to the delay. Nobody can predict fraud or a one-off material event out of the Company's control but I think that as long as the delay is simply that, a small Company overwhelmed with inadequate infrastructure, the stock will rebound nicely.