Only caveat is that it probably also represents fairly low revenue business (notwithstanding high margins) and people are putting too much expectation (as they do with all stocks) on next quarter...when EVOL needs a longer horizon to judge their success. However, I have been adding to an already large position on the days where there is a motivated seller.
They committed to maintaining the dividend and have plenty of cash on the balance sheet . In addition they have a 21% shareholder whose son is on the Board and I am sure they want to keep collecting the cash. The company has shown the ability to generate more than is needed for the current dividend over longer periods of time, so "short" quarters like this are not indicative of the dividend being in danger.
Looks like they will have a meh 2015. Talked about it looking like 2013 where they were soft in the first half of the year, ramped up bookings in the 2nd half (which Dupper said was their focus this year) and then translated the bookings into sales in 2014 (which they hope to do in 2016!). Stay till August 21, collect the divvy and then decide if you want to wait till next May for 1st Q 2016 or punt.
I found the article to be "thin soup" and wonder why the author even bothered. He doesn't seem to understand the business, provides links to EVOL materials to explain, does a DCF and concludes that the stock should be $9.30-$9.70 while using comparisons to companies whose earnings statements are nowhere near as "clean" as EVOL's and the author also uses a 7.5% growth rate?????