RE:RE:RE:RE:RE:RE:In Big Trouble
mb3015298 wrote: Yes covid will increase revenues and margins, they can charge a premium for extra coverage. If they can't make money in this environment then they are in big trouble. This is a fancy show but a poorly run company with money wasted on corporate overhead, lots of chiefs and not enough resources were needed.
You do realize the company can convert 80-85% of ebitda to free cash flow right? If we look at their last 4 quarters I get an adjusted ebitda of $6,323k. If we take 80-85% of that number then we get an implied free cash flow of between $5,058k and $5,374k. Their current market cap is only $31 million with just over $8 million in total principle convertible debentures.
The last quarter was more of a challenge but even if we annualized the $623 adjusted ebitda and take 80-85% conversion to free cash flow I get $1,993k to $2,118k in free cash flow potential. Not too bad given their current marketcap. On the positive side, contractual revenues are up over 12% from last years Q2 number and up 4.3% sequentially from Q1.
The stock market is not a sprint but a marathon.
Glta