Enterprise s/w companies with growth trade at 4+x Revs.
There is no debt, + CF positive,
While the Co too the pain re: dilution, there is NO MORE OVERHANG to the stock.
With weak hands already out, this stock will test $5 by EOY.
Need good March + June, then we are off to the races.
Should gravitate to $2 to $3 over the next 10 trading days.
This new CEO is the real deal. He has righted the ship in 6 months.
Look at other comps that are trading at 4x T-12 mos Revs (namely GOGO) and applying a similar multiple (+ adding some level of dilution), suggests a price target of $12 to $20 at current run rates. Apply a reasonable liquidity + execution risk (re: profitability) discount of 40% and that suggests that RMGN is worth $7.20 to $12 today. Take into account credibility risk and cut this in half. This stock should be trading at $3.60 to $6 imo
Volume cleared out weak hands. Management execution impressive and encouraging.
Line of sight on this turning this around. $5 to $7+ by September Quarter imo.
Settles $2 to $3 after this week, in anticipation of more product & customer news.
Too much there not to bounce materially. I know, management sux, but look at the numbers.
TOO CHEAP HERE. Everybody is #$%$. TIME TO BUY imo. This one is going to go higher, w/ cash, etc. just a matter of when. My bet double digits tomorrow, then some new folks will take the long view. This could easily go back to $40 in 2 years. Great risk-to-reward profile.