Converge Technology Solutions Corp T.CTS

Reasoned Assessment

[retiredcf]

So perhaps we can now stop all this clogging up of the BB with wild speculation and constant questions. Investors can either reluctantly accept the current situation and sit back and wailt or sell and move on. GLTA

CTS continues it's downward price trajectory. Can you provide a brief synopsis on where CTS is today financially ( ie. how long until it runs out of money)?

All small caps need to be considered higher risk.  Debt and cash flow are key areas to examine, especially during a possible pre-recession. CTS has $160M cash and $422M debt. Short term liquidity is not a concern. Cash flow was $31M last year and free cash flow was +7.3M. Cash flow has been positive since 2019. It is expected to be highly profitable this year and next. Most debt matures in 3 to 4 years. While things could deteriorate of course, we would not view 'solvency' as a particular concern right now. It could always sell assets or also raise capital if needed. 

We think CTS is buyable but with a weak market and weak momentum we would be cautious on 'more'. Keep in mind, it was 'approached' at higher levels than the current price, which is what set off the review ($3.67 was the prior price). The review is now five months old; we think six months is the timeline to look at. (5iResearch)

[AlwaysLong683]

"Keep in mind, it was 'approached' at higher levels than the current price, which is what set off the review ($3.67 was the prior price). " "5i Research" has no way of knowing this. Sure, there may have been expressions of interest in possibly purchasing CTS by other parties, but I find it hard to believe that any firm takeout offers were made by any entity before CTS&

[preytel]

i dont think ... i dont think....i dont think you dont know and neither do any of us shorty. 6 months is what im told it takes for these reviews. it hasnt been 6 months so piss off with your negative nelly, sky is falling bs.

[AlwaysLong683]

Of course no one "knows" for sure what will happen with CTS.  I believe investing in stocks comes down to rational assessment and probabilities. These BBs are a means to offer one's point of view on a given company - It's not reserved for cheerleaders only. Please enllighten us by providing your arguments as to whay you think CTS will be a winner or sold for a large

[preytel]

look always short ... ive done my homework here and i'm not about to share any insight with you. you'll fail here

[retiredcf]

A bit more. The boredom comment seems plausible given the very short investment horizon of many of the new investors who have entered the market since the covid outbreak. GLTA Short interest is up a bit, but only 2.6% so not overly unusual. We would not expect to see insider buying in the middle of a strategic review. We think it is a combination of earnings concern and boredom on the review. On

[88guy88]

Forward PE is less than 10....is this a bank stock?..trades like one....investors are crazy to not buy at this low low price plus you must realize that takeover interest has not gone away.....might get a surprise some morning before opening that its being taken over If you want to make money do the opposite of what others do....  :)) Buy when pessimism is high and sell when  everyone

[jsg335]

I want you to be right so badly, but this thing is getting harder to stomach by the day.  Seems like nobody has confidence in this stock anymore.  What a disappointment it's been. 

[88guy88]

I heard an interesting quote from a  fund manager saying that when you stomach is churning and gurgling its probably the best time to buy that stock.......the market is one big manipulation machine....get rid of all the smoke and mirrors and think for yourself.....

[Pears3250]

I agree, its time to buy. Ive been more aggresive in buying