This company capitalizes a ton of R&D costs rather than expensing it like 99% of other (credible companies), thus making EBITDA look much higher than it otherwise would be and the income statement look better. Best to look at the cash flow statement on this one. Also dumps (wastes IMHO) a lot of money by overpaying for marginal acquisitions - so Goodwill is now almost $250M so that gets depreciated also. The company now has negative working capital, can't really use it's stock for acquisitions any longer, and IMHO is cruisin' for a bruisin'. Why do you think insiders were dumping shares so violently all of last year?
Yes, I see that. The depreciation from the capitalization of the R&D seems to be about half of it and then there's all the goodwill that needs to be written off from overpriced acquisitions. Still, most of the insider selling in 2012 was at 200%, 300% or 400% of today's price although it is concerning that the insider selling continued all the way under $5. That being said, if we assume the entire business is legitimate and the market felt it was worth $12 to $16 in 2013, is it possible it's worth half that in 2013?
It went public in bubble territory, the prospectus was painful (actually kind of disgusting) to read but I can't say what a fair value is. Disney/ESPN are involved and I like that plus I know I like the thought of less fragmentation in the event management field but can it gain enough market share to make it a "must-have" product? They aren't there yet.