RE:A "Decent" Quarter Could Launch this StockWe got a decent Q2. Revenues were $73.1 million and EBITDA was $4.3 million. Data lowered its 2017 adjusted EBITDA guidance to between $18 million to $20 million, which was expected (and likely more than priced-in the shares).
Outlook seems to indicate (expected) positive sales momentum into the second half of 2017 and into 2018, but from a lower starting point. Assuming momentum continues, and EBITDA stabilizes, I would think fair valuation (5x EV/EBITDA; $19 million EBITDA; $50 million debt) should move the shares to $2.25/share.
But I don't suspect I get there immediately. Since a large quantity of shares were issued recently at $1.40/share -- it'll get incrementally more challenging to move materially above $1.40/share as there are likely to be a number of sellers/profit takers. At the risk of looking like a fool, my guess is we move to $1.50 in the near-term and $1.75 by the end of August.
I'm still looking for that deal in September to get the shares moving...
This is good enough. These results are much better than feared.