Post by
Trevor876 on Nov 19, 2020 9:53pm
Merger Possibilities
Just my own personal opinion for how we can be the "leader in DEM" as stated by the CEO. We need to merge with another company of similar revenue. If you look at the corporate presentation they outline 3 companies as key competitors on page 13, ENOW, Exoprise and Thousand Eyes. Thousand Eyes is a joke because they probably don't even know who Martello is, especially now that they have the deep deep pockets of Cisco to play with. Thousand Eyes was bought out for a 10x revenue multiple. Why did Cisco pay for that? Because when you buy a company that makes $10-15 million a month in revenue that is a big increase to your bottom line, especially if you can streamline and grow it. No one is paying $180 million for Martello right now.
Martello isn't even at the $2 million a month revenue target yet. No company is paying a 10x premium for a company that has that low a revenue stream. My advice is growth through merger, not acquisition. You can't acquire great companies if you're just as small, if not smaller, than they are. Mitlel only has about 20% of their services intergrated with Martello. Not a big number.
If it were me, and I am no expert, but I would say "ok let make this happen for real. We want to be the next Thousand Eyes. We can't do it on our own. Especially since they are now expiditing revenue and contracts thanks to Cisco. We need to merge with similar companies. We may lose management positions but retain stock so we still win in the end. We merge with another DEM or Mircosoft focused company of simialr revenue at get to $50 million. We then work tiresslly for 6 months to integrate then we focus on another merger for a company making similar revenue. We then find ourselves potentially losing more management jobs but thats ok we retain stock. Now in 1 years time we have a company that went from $20 million a year in revenue to $100 million." If Thousand Eyes increased their revenue by 30% that would put them at $13-16 million a month.
This is my problem. The gameplan is not hard. What is hard is having people in management with egos so strong that they can't recognize when a company is better without them than with them. Martello has offices in Paris and Amsterdam. Hardly the "tech capitals of the world." No presecne in San Franciso, Palo Alto or Seatle where the real tech lives.
Comment by
Trevor876 on Nov 19, 2020 10:20pm
You're right. Tech moves the the pace of coal powered vehicles. My apologies
Comment by
PatiencePays123 on Nov 19, 2020 11:41pm
Like I said, thank you to all the sellers for cheap stock :)
Comment by
Mikeyrob on Nov 20, 2020 6:52am
30-40%!???? Try 5-7%... do you have some sort of learning disability. Stop cheerleading and do a deep dive on the numbers and you will see that they were not strong. They weren’t terrible but they were not anything to come home about! They need to show a lot more if this is going to move up because I’m starting to think this stock is not undervalued
Comment by
PatiencePays123 on Nov 20, 2020 8:28am
You are clearly the one who needs to go back to high school. 5-7% growth is what they grew quarter over quarter in gsx. Annualize that growth and you get to 20-28%. With the recent announced wins, I get to 30-40% :)
Comment by
canyousayiii on Nov 20, 2020 8:53am
An undervalued stock taking a beating after posting financial results. Hmmm....... And if the CEO says that, is he commenting on his own performance in how he is promoting the company as an investment, that is part of his job description? Hmmm..... Deep thoughts.
Comment by
JackBNimble26 on Nov 20, 2020 10:28am
But MTLO has a big sales presence in the IT capital of the world: New Brunswick.