Nat Stewart - Stock Picking Newsletter

Nat Stewart - Stock Picking Newsletter

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Nat Stewart - Stock Picking Newsletter
Nat Stewart - Stock Picking Newsletter
"Left for dead" micro-cap
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"Left for dead" micro-cap

+75% of market cap is cash, minimal enterprise value, just-announced contract win suggests this "left for dead" situation might be getting traction

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Nat Stewart
Jul 28, 2023
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Nat Stewart - Stock Picking Newsletter
Nat Stewart - Stock Picking Newsletter
"Left for dead" micro-cap
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  • “Left for dead” in 2022 when investment in growth didn’t pan out, a few horrible sales quarters - enterprise value is now minimal

  • The market didn’t seem to believe CEO’s recent earnings call statements - cash flow breakeven by year-end 2023, +15% full-year sales growth

  • Just announced contract win could be a game changer for the company - create the proof of execution/benefits that might help win additional US contracts for its cloud-based software

  • Revenue growth (92% gross margins) plus the expense management discussed in the last earnings could re-rate the stock from “dead man walking” status

  • Part two of this article will be out after Q2 results are released

This is sub-$100 million micro-cap stock - anyone who considers a position should be aware of the extreme volatility and spotty trading liquidity in such securities before making any investment decisions. Also, read my full disclaimer - no article on this site is investment advice - I own shares.

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