Sangoma Technologies Corp T.STC

Sell Off?

[retiredcf]

We prefer not to sell into negative momentum. The sell off has been consistent with the sell off in the tech sector so we do not think it is company specific. The company has grown revenues by 52% and is expected to grow another 65% this year. Margins are trending upwards and cash flows are growing. At EV/EBITDA of 7.5x, shares are trading below pre-pandemic levels. We would view this as a hold for now. 

When asked whether one should sell, this was the response from 5i. GLTA

[CandyC]

Could be buying opportunity on a pullback under $14 if earnings disappoint 

[MarkG1963]

down 55% in the last year. down 40% in the last 3 months. This is extremely bad going into reporting. I would not be surprised to see a drop of 20-30% on reporting. There is also talk about more aquisitions which will also drop the price. I would expect 10-$12 range. There is absolute no catalyst for this year yet.

[AlwaysLong683]

Nice call. February 10 after market close:    STC reports Q2 2022 results. February 11:    STC hits a daily high of 19.40 shortly after market open before closing at 17.89, up 2.99% for the day while the majority of Canadian small cap tech stocks finished well into the red. Translation: Market liked what they saw in Q2.

[retiredcf]

Which is why Mark is deservedly in the ignore bin. GLTA

[Captain71]

We are really taking it on the chin today with the Nasdaq in the green. Did I miss something in the Q2 report?

[masfortuna]

LOL! It took you guys that long to put him there?

[Torontojay]

  Anybody have TonycLewis on ignore? Lol 

[CandyC]

Anyone have reasons to own Sangoma in the short to medium term? It's now at its lowest SP since September 2020

[CandyC]

Ross Healy is on Market Call today. Says Nasdaq is similar to 2000 with the dotcom crash. Expects another Nasdaq crash. Valuations are too high. I put Sangoma in that boat. Says TSX should do well

[Torontojay]

  This is far from the truth. The stock market is not at all like the dotcom bubble. The difference between now and then is the interest rate. Back in 2000, the treasury yields were much much higher than current prices. If you sell your stocks today, what is your next best alternative? I'll tell you one thing, I'm not selling my stocks to purchase 10 year bonds that's for sure.&

[CandyC]

  I'm staying invested 95% in small cap oil. There's nothing to suggest that oil will pullback more than to $85 WTI. Covid is going to be endemic soon and travel is going to be enormous this spring and summer no matter what the gasoline prices are

[MarkG1963]

there has been nothing management has put out since the Star2Star aquisition that looks prominising. Turning out to be a bad aquisition. Too much too fast, overpaid. It was a good company before this.

[Captain71]

Wish I could give you a more decisive answer. On one hand this company has increasing revenues, not declining like many tech companies. So we should see a nice move up once this tech sell off is over. A larger percent of revenues are recurring as well since the acquisition. Another positive is there should be some technical support around the $15-$16 level. I’m not a technical analyst so could be

[CandyC]

thanks for your input. I think the SP will still drop. I might buy back in at $12 if it gets there. Definitely oil is the place to be for the next few years. Ross Healy was very bullish today on Market Call today   

[Captain71]

Market is pretty suppressed due to Covid, fears of even higher energy prices, high inflation and raising interest rates. I may be wrong but looks like we might be in a better position than most are anticipating. With these new Covid variants being much less severe, things are opening faster than many though it would. As things open up, it takes quite a lot of pressure off supply chain issues

[MarkG1963]

it spiked  for a few minutes on reporting a bunch got out on the spike. My guess primarily institutions as they move the market not us retail investors. Banks can set all the targets they want but I am sure they make good profits by pumping then dumping.  It is now down 4 % since before reporting. All the moving averages are trending down and should continue to do so .It has been exactly

[justus717]

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