2018....maybe the turnaround story is happening? I just re-listened to the earnings call again and I’m more upbeat that they can continue the momentum gained at the end of 2017 into 2018.
Some of the highlights from the call that I liked:
- The ERP system looks to finally be ready for the back half of 2018. I’m not sure what all it will bring but hopefully at the very least some costs savings and efficiencies
- The sales force compensation is now fully on gross margin rather than top line numbers. The culture has changed and they aren’t just order takers now. They don’t want just transactional sales staff and have been hiring more people familiar with selling technology and software
- They have over 3000 clients and at least a couple of thousand of those are mostly just getting quotes. They are attempting to cut the chafe and don’t want to be in the quoting business
- Unfortunately we can’t expect more investor relations communication as these guys are not promoters, so this is a drawback from this group
- They actually seem genuine about the prospects for 2018!
- They also stated that they have a great relationship with all levels of the lenders and banks. They said that their lenders are really happy with the progress they have made.
I think we will have a slow increase in the SP to maybe $1.50 - $1.60 until Q1 is released and if they can show that 2018 really has turned around we could be in for a great year!