Bought in todaySpent several hours doing due diligence last night, and decided to purchase 10k shares this morning. The near-term liabilities and debt on the balance sheet is the biggest risk IMO, but they have $21 million in cash plus $2.6 million in other current assets against about $15 million in near-term liabilities and debt. My suspicion is that as their brands continue to show relentless growth and profitability they will be able to consolidate some of this debt in the near term.
Love the large pipeline of potential acquisitions and the focus on niche brands that are already established in their own ecosystem and are profitable. In their research report, Canaccord talks about a few names that have very successfully utilized this targeted acquisitions approach to grow their businesses exponentially. The most recognized name is Constellation Software.
I see this as being a long term hold with potential to be a ten-bagger within a decade, though in the short term it could be a bumpy ride.
Looking forward to upcoming Q2 financials and news about one or two acquisitions by year end.
GLTA