RE:RE:Fiscal 2023 - SP targetI agree it may be fiscal 2024 before we see the financial improvements many investors are looking for. With that being said I hope to start seeing some improvement in fiscal 2023. So with fiscal 2024 beginning in July 2023 and the market usually looking ahead, we may see some SP improvement sooner than we think.
I do disagree however on calling STC a “turn around” story. Unlike many companies, their business never really took a big hit. Revenue & EBITA have remained strong and even seen some growth throughout the pandemic and economic headwinds so far.
I think a lot of the poor performance can be attributed to the tech sector in general, but let’s face it, no investor appreciates an overpriced takeover or a reverse split, both of which typically hurt shareholders. Couple that with a poor bottom line and a ridiculous $110 million loss for the year (no matter what the excuse), and we see an even worst performance than the tech sector in general.
Of course management is not ignorant of this and I think they will be working hard here to win back investor confidence. Once they clean up the bottom line and we can start adding instead of subtracting earnings to the SP, I honestly feel we are in for some substantial SP gains.
GLTA