RE:The jokes write themselves
truthis0utther3 wrote: So Tal says a good quarter when they lost $1.5MM cin operations but made a gain due to FX.. curious how they always menton constant currency when FX doesn't go their way but downplay it when it does.
All I need to hear bottom line is that they conttinue to grow revenues BELOW THE RATE OF INFLATION which tells you they are actually shrinking not growing. The rest almost doesn't matter after that. You can literally buy a guranteed government invetment with no principal risk and outpoerfrom Actuityads BEFORE applying returns on a risk adjusted basis.
And by the way, comparing to TTD or PUBM is fine but there is no law that says you have to own any of these companies.
Good luck.
I hate to burst your bubble but most companies suffer when the economy is on the verge of a recession. Costs such as energy and labour tend to outpace price increases which explains why margins on the S&P 500 are shrinking. Acuityads has to face wage pressure from its workers as well as growth initiatives in its r&d and marketing. This works with a lag and so spending on growth needs to occur first before a payback is achieved.
If we assume 2-5% growth in sales over the next several years, then from a purely mathematical viewpoint, the company would be worth more than $30m ex-cash. The downside risk is minimal but the upside is attractive to me as a shareholder.
I personally believe the markets is heading lower in 2023 despite the current cpi report. Annualized core inflation or core pce on a month over month basis is still running at over 5%. Acuityads can weather the storm with its cash balance and will likely acquire a company on the cheap when valuations are at all time lows. A win for shareholders in the long run!