Market Savvy ManagementThe primary reason I've been accumulating shares over the last few months is because I see a very qualified management team leading a company from a "turnaround story" to a "growth story". But, in addition to having improved the fundamentals, management receives full credits for their market savviness.
For two/three years management has been building credibility, hosting honest and open conference calls (and never over promising). The company's recent guidance, now pointing to EBITDA of between $2.8 million and $3.0 million in 2018 (and "making it sound like" they could hit 10% EBITDA margins in 2017) has sent the shares soaring. Now there's a lot of capitalized R&D...but that's another story.
With guidance that is believable it is conceivable that we see continued upside in the shares. Valuing the shares at 8x EV/EBITDA 2018 EBITDA would get the shares to $0.75/share. We could get there soon.
But with a new (deep pocketed) investor my sense is Sangoma is looking to increase its stock price (rightfully, since it's undervalued) to a level where M&A with an equity issuance makes sense (i.e. is accretive). I think we get there soon. And I think the company continues to execute.
Still in the early stages, in my view.