Post by
banx on Jan 06, 2016 9:45am
COMING BACK FROM THE BRINK
On Dec 14/2015, we learned the sky fell.
On Dec 21, a new mgmt team was announced including a CEO with an impressive resume in school administration.
On Dec 22, a workout in principle was announced with BMO as well as a pref share financing for $3 million.
And then came the holidays....
Now people are back to work.
There's def news coming so patience is required.
The current valuation of LRN is cheap and the reward profile is high.
However, the risk beta is also high.
This business took years to build and get to that fat annualized $50 million top line so a quick fix is not an overnight thing but the risk/reward is compelling enough to attract speculative investors.
Most Venture plays are pre-revenue, this is clearly not.
Comment by
lushlife on Jan 06, 2016 9:54am
Good post banx. Sums things up nicely.