Urbanimmersive Inc V.UI

Discounted acquisition?

[eKanameStock]

Hey everyone,

Looking into this, those three acquisitions together made $1.6m in revenue in the fiscal year 2020, a difficult year for many, but this would imply that their revenue would be stronger this year and the years to come. It would of been great to see their revenue in the previous years as well to see their growth, but the point of this post is to focus on the cost of those 3 acquisitions.

A little over $3m for 3 companies that brought $1.6m. So let's say we remain at that level, it'll take us two years to pay back that investment, I feel like this has been a pretty good deal, dont you guys think? Especially when their revenue might be stronger as the real estate goes back to normality + one company being commercial focused...

[eKanameStock]

Replying to myself and to add more into it. Discounted Acquistions, but at what cost? The market seems unphased about the acquisitions... I believe the main issue is the lack of details, its nice to see how much revenue they could bring in, but there is no mentions of their assets and most importantly DEBT! Are these company badly in debt and just not being profitable? I think that news was great

[laurencelefou]

We are passive investors, we wiill have to wait for the fourth quarter financials to be released to see how the acquisitions have modified the balance sheet, and the income and the cash flow statements.  It is not unusual for a company not to share all the details regarding an acquisition.

[eKanameStock]

Passive is sure what we are! Yeah we'll definitely have to wait on the quarter release to get that information and that is correct, I've rarely seen any company mention anything else besides the revenue in their NR. Let's go UI -> LONG