Damn… US inflation running at 8% ITS salaries going higher. Input costs to sensors and chips going higher. Interest rates going to go higher. This means lower margins for ITS.
$120 oil blunts any new tolls being put into place as consumers struggle with paying for basic food and gas. Tolls are a luxury that can only be imposed on consumers during good times. 15% growth is dead.
Now we have a leveraged bet on ITS when valuations for firms are collapsing.
To put it into perspective, a decline of the multiple from 11X to 6X wipes out all of the shareholder equity that was put into ETC.
The debenture holders are fine. Just the common stock holders get wiped out on the ETC investment.
I guess Our b-team Board isn't smarter than the a-team sharks at Align Capital.