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Pivot Technology Solutions Inc. T.PTG

"Pivot Technology Solutions Inc offers IT solutions to businesses, government, education, and healthcare organizations. It operates through the following segments: ACS, ARC, ProSys, Sigma, TeraMach, Shared services. The company derives the maximum revenue from the ProSys segment which sells storage, server, and IT infrastructure consulting solutions to enterprises. Geographically, it derives majority revenue from the United States and also has a presence in other countries."


TSX:PTG - Post by User

Comment by ValuKingon Aug 09, 2017 6:32am
132 Views
Post# 26559607

RE:Greater recurring service revenue means more predictabily

RE:Greater recurring service revenue means more predictabilyThese knuckleheads can say whatever they want but unless they start formally guiding it will just be story telling. Facts are facts as results are results and you can't storytell your way around them. They were sh!t compared to same period last year. Revenue was good growth because of product sales...services revenue shrinked!!! Doesn't this go against their visionary comments? AND net debt to this quarter ebitda annualised is about 15 times!!!! Wow. The stock price is clearly implying a very stretched full valuation. I'd steer clear until formal guidance is issued...if it ever is. But I doubt they ever would because of how competitive and volatile the industry is. Tryin to squeeze a dime out of a nickel ain't easy bones!!! Until then it feels like a good ol' fashioned bed time story my oma would tell me decades ago to stop me from crying myself to sleep!!!!
lscfa wrote: Service revenue is higher margin and more stable...... 


"The execution of this strategy is intended to create higher value recurring revenue streams over time that offer greater predictability of performance by somewhat reducing the Company's exposure to the capital expenditure cycles of its customers. The intended refinement of the Company's service strategy may not offset capital spending volatility in the short term, although management believes the prospects for product sales are positive."


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