RE:Holding the LineGood day all.
I was thankful for the impatient sellers today and took advantage to increase my position. This is what small cap value investing is all about. Although your point about other small caps trading up and this one remaining low today and for the past year is truthful.
The company needs to continue announcing and reporting on its growth and rather quickly this value stock will turn into a growth stock and better reflect fundamentals. They have been rather quiet for some time on this front but I believe it is due to Quiet Period. The disconnect is large from my perspective.
Software companies are usually highly susceptible to takeovers by trading under five times revenue. The ones trading above five times revenue are the consolidators of the ones below five times revenue. This stock is valued at just over two times revenue by my calculation. Terry Matthews who is the largest holder here can only defend off vultures and sharks for so long. Sooner or later the chickens will come home to roost and this will be valued above five times reflecting its fundamentals or it will be acquired for 5-7 times revenue by a consolidator or by private equity.
I am invested here because after extensive homework I think the chickens will come home to roost either way before the end of the year.