RE:RE:Need That Buyout IMO.....Michael Burry also posted a tweet yesterday before the Fed meeting "Sell".. we are up 4% since yesterday and he deleted his account.
Broken clocks are always right twice a day.
LSPD and CTS are very different companies and have very different acquisition strategies. Despite us saying that CTS is "tech", the majority of their revenue is derived from hardware sales - they are just a distributor like CDW or Softchoice. They are beefing up in the IT services add on area to cross-sell to their existing hardware sales. LSPD is a high risk classical tech growth stock (I have no opinion on LSPD and whether it's good or not). So I don't think it's comparing apples to apples.
CTS has a very tight acquisition strategy which is EBITDA positive companies at low multiples. As long as these companies are performing and organic growth continues, things will continue to go well. That being said, you're right in that it's possible they take a write-off of a portion of their Goodwill on their Balance Sheet. Who knows - but it's a non-cash charge and doesn't really mean that much to be honest. At the end, it's about EBITDA and cash flow and we will see in a few days what the numbers look like.
Since we've been debating CTS, it has gone up 30% or so in the last few weeks.. so who knows what the future will bring, but shareholders have been doing pretty well recently.