GREY:SLHGF - Post by User
Comment by
Rc0gburnon Feb 03, 2022 11:34am
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Post# 34393274
RE:Excellent YT analysis on Skylight Health
RE:Excellent YT analysis on Skylight Health I thought the video was pretty good, but he did spend most of it just reviewing Skylight's recent corporate presentation.
I have been in and out of this name quite a bit and I believe the critical issue for the company is CASH.
Last year they had almost $20million of negative cash flow as they went on an acquisition spree, built up revenues, incurred costs, etc.
As of Sept 30, they had $5mill in cash. They raised another approx $5.5 million via a pref issue in Dec 2021.
The revenue run rate is likely $40million or more for 2022, putting it at 1x revenue or less. Looks cheap! But...they need to hoard cash and get profitable or close to profitable to move the SP higher. It makes no sense to issue equity at these levels. If they can limit their cash burn this could be a rocket ship, especially if the sector gets a bounce. I like the team and think its a great opportunity but it does have a LOT of risk.
For a less risky trade, Look at the prefs, issued at 21 (11% yield), now at 16.5 - a 14% yield, coupon paid monthly.