RE:great review on STC It's hard to read that "review" seriously when the author fundamentally misunderstands the company's balance sheet.
For example, the author states that: "They do not have enough cash on hand to cover their upcoming considerations payable for previous acquisitions". Yet, a quick look at the MD&A, p.16, would show that for consideration payable "there is no cash exposure to Sangoma since the payment is only due when the tax benefit is actually realized, and the two balances will largely offset each other over time".
Moreover, the contract liabilities represents the value of services to be rendered that has been already paid for, which means the costs for these are covered by normal operations and/or inventories, and as such won't require cash to be expensed outside of the net cash flows from operating activities.
This leaves the term loan to be paid which is largely covered by the cash flow generated by the operating activities.
So, while I don't currently hold the stock and think that their results have been underwhelming, I would still qualify that review as amateurish, considering their mistakes regarding the balance sheet.