If RAD is to trade at a similar multiple as WAG(0.65 x Rev), then RAD's PPS should be $18.02. I believe that RAD is on the right track to reach this level. Once their Advertising kicks in full force, sales will follow. These are just a few things Ace doesn't want you to know.
when they were losing 60 cents per fiscal year the debt was a concern, now that they've refinanced and are making money and growing earnings at 100% per year the debt is of little concern and not much higher than other companies with 26 billion in revenue.
I have scoured the equity universe top to bottom and it's hard to find such an undervalued stock like RAD. Increasing profitability on $25B in sales with only a $3B market cap? It's going to take at least until $10+ to make it look frothy !
Yep the shorts keep saying the PE is high while completely ignoring the much higher earnings growth rate, much lower Price to sales multiple and also the potential RAD has for significant earnings growth going forward.