Disappointing; expected a sp pop. I guess with the share sale at .56 and the warrants, it's holding it back. Hopefully, we'll get lucky and they'll sell this thing for something over $1/share. I'm not holding my breath.
I own a bunch of shares between .80 and 1.20. I see the value in the revenue growth. However, their margins are thin. I don't see a valuation at 2.50/share. Generally, if I'm not mistaken, the value for this type company is generally 2x-3x revenues. With about 80m shares now outstanding, I can see spdc fetching about $200m, maybe a little more, before accounting for debt. Once you back out the debt, we're looking at a net of approximately $100m-$110m. That works out to be 1.25-1.40/share. That's about the top value I can see from my perspective. We'll see how it trades in a bit.
I understand the Dutch Auction tenders are going well. There should be a payout of $4.20-$4.60 over the next two weeks for those long now. I anticipate as those shares, about 7 million of them, come off the ledgers we'll see the sp of Exfo bump to something substantially over 4/share. Now is a great time to buy. Jobe
Touch Q no doubt, and they have a lot of debt to manage. That said, revenues grew smartly, albeit not as strong as anticipated. They lost a few clients, but added several others. I'm taking a flyer at this as I anticipate with the strong and new management, good product, strong backlog, and new customers added, this will move up again soon. It's a very reasonable risk/reward, and I anticipate a return to 2/share prior to next Q's release. Jobe