OTCPK:AVEFF - Post by User
Post by
93Darkhorse93on Apr 12, 2017 10:08pm
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Post# 26115879
Q4: 79% Revenue Growth and Over 800% Growth in EBITDA…
Q4: 79% Revenue Growth and Over 800% Growth in EBITDA…Inflection Q!!! now the story has turned back to EBITDA generation with the rig count continuing to rally. Finally reached that critical sales level where gross margin (including amortization and depreciation) turned positive back positive.
Best Q from a EBITDA perspective since Q1 ’15.
Looking forward, guidance number was so strong. Management already told you revenue in Q1 is up over 230% at the midpoint of guidance range YoY. (39M -41M) AS well up 28% QoQ which is no coincidence revenue growth has been following rig count growth tick for tick!
Last time sales were at this level gross margin was 15-20% range and EBITDA margins back into the 15% range. Project that out on 2017 on business environment improvement you could be looking at EBITDA of 15M – 20M. When the market cap at this level is only 34.8M it is one of the cheapest stocks I can find.
I have started a position right before Q4 and added aggressively today as the stock should have been trading significantly up yet was essentially flat on what was amazing Q1 guidance and solid Q4 results. Time for management to go out and sell their story and themselves as a new leaner management team and business model starting with institutional investors April 20 at the Richmond Club followed by an investment tour in May. This is your chance to get in before the big guys for a change.
LONG