Sangoma Technologies Corp T.STC

Oh Boy....

[AnitaGet]

It;s been YoY and QoQ growth for almost 4 years now. This is the Q news I was dreadeding. I expect this news will give me a good re-entry point over the next week.
A.

[Torontojay]

The Star2Star acquisition is costing shareholders big time. They've been caught with their pants down acquiring such a large company at the peak of valuations. Share dilution will continue until July 1 2025 if my memory is right.  Could they make another costly acquisition in the future? Who knows, but shareholders are running away.   

[gwimmer]

A am not sure why future share dilution is talked about. They have 33.3M fully diluted that figure does not change from Star2Star deal and in how you value the company. Secondly the Star2Star acquisation is largley why STC genreates close to 80% high margin SaaS business whos organic growth rates is highest among their peer group.

[Torontojay]

The purchase price on Star2Star at the time of acquisition was an expensive one. They paid 30 times Ebitda which is not to be mistaken for free cash flow. If one takes free cash flow into account on the acquisition date, it is more expensive than that. Shareholders are now left with the bill and they are not happy about it. Given the purchase price they paid, S2S should be growing at a phenomenal

[prophetoffactz]

~75% of the purchase of Star2Star was with STC's own inflated stock substantially cancelling the overvaluation out. Going forward STC benefits from the tax shield. 

[CandyC]

TorontoJay you should be correct about July 2025 and shareholders are running away. 570K traded today. These institution investors may never return. I might buy back in if it hits $4 and that will only be for a quick traded. The StartoStar killed this stock 

[Possibleidiot01]

This is the problem when a company is a serial acquirer of other companies. You start small with small purchasers, it goes well. you buy more companies and it goes well until you get to a size where you have to make a good large purchase to maintain that prized growth company status. That's where we are , with doubt permeating investors. Better to stay on the sidelines and wait to see what