RE:Thinking Just a few comments.
- they did the funding to do larger acquisitions. They've been doing $1-2M acquisitions but in order to complete the $5-10M acquisitions, the sellers want to see the money in the bank. There was talk about doing convertible debentures but the feel about them was that they'd be viewed as debt vs. equity and it would push the debt to equity into the 6 range - making it essentially uninvestable.
- I think there's something in the works to drive organic growth in the new year. My thought is they're going to be working on data insights to drive sales for their clients. It'll be a software as a service type model and it'll have very strong margins.
- They've completed 7-10 acquisitions and the fact that they've successfully done this shows they're competent with inorganic growth. This is a key driver for my reasoning to own this company.
- Price target - 50 cents. Validation: They're acquiring companies at the level they're trading at now. Roughly 2x sales. They should be double this metric because they're the consolidator and with each acquisition they're increasing the profits of the acquired by reducing redundancy in the business leading to larger margins.