RE:This stock is so frustrating
wasluckyonce wrote: Nasdaq up over 300 points and we are negative
8 analysts with projections over $30
Great acquisitions
What is with this stock?
The bullish case: the company is creating a better end to end solution for its customers. Revenues will be stickier and the recurring revenue from services will likely grow by double digits in the foreseeable future. I have no doubt they will grow into their valuation even as the share count is expected to increase.
the bearish case: there are a total of about 31.7 million shares ( excluding recent and future acquisitions) that will be in circulation after July 1st 2025 due to the Star2Star acquisition. At $17/share, the future market cap would then become $538.9m. The current ebitda for 2022 is expected to be C $50m + on a market cap of about $538.9m using 2025 share count numbers. It was certainly an expensive acquisition but a critical one for the company.
Overall I like the valuation here for good returns in the future. A perfect candidate to double your money in 5 years or less.