RE:RE:RE:Adcore is TSX-bound Fixed the formatting.
With no debt and 6.1M in cash on the balance sheet, why would there be dilution? Management owns 82% of the company. It's in their best interest to not dilute shareholders (themselves) unless for advantageous purposes.
Some purposes to do an offering (after spending their cash balance):
- acquire marketing agencies to increase customer base
- buy add-on products to sell
- increase R&D (unlikely, they already have shown strong product development without the need for external capital)
So, if they do dilute shareholders, it'll be to increase sales/profits through inorganic growth objectives.
They've had a CAGR of >35% over the last 9 years, which slipped in 2020 due to covid to a mere 15%. The growth came back in the 4th quarter calculated to be ~100%. This was - and still very much is - a growth stock. 100% increase in sales while still in the midst of a covid recovery. Let me repeat that. 100% increase in sales. And profitable. So you say dilution of shares is the danger here or that management is going to sell some shares? Pfft
The danger is we get bought out and we don't get to compound money at 100%+ returns for years to come. Think about it. What would you do if you were management? Probably stay invested in a company growing at 100% (topline) where multiple expansion of the stock price is surely to take place. Especially now that it's going to the TSX big board (Nasdaq surely to follow).
On a side note: the other exceptional aspect about its revenue and profitability is their consistency. You can basically draw a straight line from bottom left to top right on the charts. And markets love consistency. They pay more for it. See you at $15 by end of year - buyout or otherwise.
Just to put this in comparison to something. Shopify just reported 96% growth, not profitably. Adcore was 100% growth, profitably. You do the math.