Sad to admit it but its time for Tal and team to sell this company. Last week was the final straw.

After announcing a great acquisition with payment terms structured to protect existing AT.V shareholders with back end loaded earn out payments the stock traded up to 1.66/share and only a week later the stock is down at 1.22/share or 25% lower. RIDCULOUS
 
If the market is not giving credit to the business when it is to other companies in the space (see TTD.US) management has a responsibility to maximize shareholder value and seek strategic alternatives and not keep adding on debt when the business doesn’t have the operational scale to generate significant positive cash flow.  
 
Perfect example, Analyst have a mean target price of 3.77/share or over 200% upside. Clearly something has to give…
 
Assessing Value

Using The Trade Desk, the largest player in programmatic space for a valuation to put on the company. The Trade Desk trades at 5.00x Net Sales!
 
Applying to AT.V
 
Analysts have a mean revenue estimate of 81.9M. Granted AT.V reports Gross sales not Net sales, given the 50% gross margin figure I get a Net Sales figure of 40.95M for Acuity.
 
Add on the 8M of net debt and I get a takeout target using a 5.0x EV/Net Sales of 4.10/share or up to 235% upside!!!
 
You can look at Yellow Pages buying Juice Mobile or Snapchat buying up adtech businesses or a large legacy media business that needs to get digital and is willing to pay up. The underlying value of the platform is worth multiples of the share price. 
 
Has a real NYX.V feel from last year when the analyst price targets kept going higher but the share price kept going lower. Only to wake up one day to get a take-out bid with over 100%+ upside.
 
Been in this name since 2016 have rode it up and all the way back down, luckily position size discipline allowed me to get my more than my initial cost base out above 4.00/share but I was adding back last week. The move Friday caught me completely off guard, all I can do is smile at this point…
 

LONG