RE:RE:RE:Annual report learningsNot crazy in the least. SYZ trades at 175x trailing 12 month earnngs with reported earning falling YOY and it burns cash. Adjusted EBITDA is a BS number for measurement purposes. When you capitalize $5M in R&D, amortization is a real cost. Interest and taxes are real cash costs too. The earnout (which continues for the next 2 years) is a real cash cost. Stock compensation is a real cost as it dilutes shareholders. This company loses money on a cash basis - it isn't proftiable.
This quarter (Q1 2024) you will see another decrease in cash as $4.1M goes out the door to pay part of the earn-out and the time clock system acquisition (which clearly does not generate any cash) and cash will be used to buyback stock (at 175x earnings!).
SYZ is a company with debt (working capital deficient of over $22M). Its cost of debt exceeds its return on equity. Even a savings account produces better results than this business. Operated the way it is now means the company is near worthless. It is, however, a great deat for management as they compensate themselvers very well.
Last year Penderfund said SYZ was worth $20-$25 per share. It's odd that they sold 25% of their holdings at $7-8 per share in the past few months - that speaks volumes.