Sangoma Technologies Corp T.STC

RE:RE:RE:RE:RE:RE:Q3 next thursday, may 12

[AlwaysLong683]

masfortuna wrote: Or she is saying don't buy tech names LIKE Sangoma who are out of favour. She already stated she already owned the stock but no longer owns it.  I made the mistake of not selling when I should have. Yes it is a sector slowdown BUT we also have other issues including a chip shortage to contend with, and a reverse split that was a complete disaster. 

Here is a question for you. Did you think the timing of the acquisition of Start2Star was timely by management knowing there was a possible extensive chip shortage? Don't forget to comment about the cost and whether you think based on the earnings they overpaid and let's not forget the r/s...

Would you be happy about an investment, ANY investment that you would be down 50%+?  The fact is that sector not withstanding, this is a dog at the moment.  I am hoping that changes.
Mas

S2S was a company that was much more of an SaaS company relying much less on hardware sales than STC pre-acquistion. The S2S acquisition also increases the % of total recurring revenue, so in my view, if you want to talk chip shortage, the S2S acqusition is actually a positive for STC, not a negative.

The share consolitation (or "reverse split") was done to get the NASDAQ listing. It's important for STC to be listed on a major US exchange like the NASDAQ because its major competitiors are American-based companies already listed on US exchanges. S2S was itself an American company. Please re-read my previous post on all the beatings many small cap tech names have taken over the past year that have been just as bad if not worse than STC, including two of STC's US competitors whose share price has dropped even more than STC's on a % basis, and those companies didn't acquire S2S and they didn't do a 1:7 share consolidation either. Gee, how did that happen....?

A problem for STC has been thin trading volume and a lack of expoure or recognition in in the US investment community, and plerhaps STC should hire a good IR firm to promote the stock in the USA, but given the trainwreck that has been the small cap tach sector over the past year in both Canada and the USA, it may be best to wait it out as, if the market is running from the sector in general regardless of company, no amount of promo will turn the tide until things bottom and investors start looking to small cap tech names again.

If you are a trader who engages in a sector rotation investment strategy, then by all means run with Oil and Gas E&P companies for as long as you think those share prices will rise. Then decide if / when you are going to rotate out of that sector, and where you are going to invest your proceeds. But if you review Candy's posts, you'll notice she talks about and picks on STC specifically, not small cap tech in general, so that excuse doesn't fly with me.

Yes, it' disappointing re. what happened over the past year if you're an STC shareholder. If you are into sector rotation, congratulations - sometimes it pays off, sometimes it doesn't, but your total returns will be influenced by how well you do in making three successive decisions:
1) When to buy in and/or buy more.
2) When to get out.
3) Into which new sector(s) and stock(s) will you invest the proceeds.

Not knocking the strategy - I'm just not a big fan of it.

Finally, here's a question for all you oil and gas fans:
Would it have been OK if I had picked any small cap oil and gas E&P company I wanted to bash in 2020 when the whole sector was getting creamed (similar to the small cap tech sector now), or should I have perhaps been a little more thoughtful in not lumping every company into the same basket.....?

If you still don't get it after reading the above, I can't help you.......