Should You Hold Sangoma Technologies Corporation (SANG)?
Donville Kent Asset Management, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. So far in 2023, a handful of the world's top stocks have accounted for nearly all the stock market returns. To summarize the current small-cap investment landscape in one statement, it would be: “Record revenues and record profits with historically cheap valuations”. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Donville Kent Asset Management highlighted stocks like Sangoma Technologies Corporation (NASDAQ:SANG) in the second quarter 2023 investor letter. Headquartered in Markham, Canada, Sangoma Technologies Corporation (NASDAQ:SANG) engages in the development and manufacturing of voice and data connectivity components for software-based communication applications. On August 24, 2023, Sangoma Technologies Corporation (NASDAQ:SANG) stock closed at $3.8600 per share. One-month return of Sangoma Technologies Corporation (NASDAQ:SANG) was -13.19%, and its shares lost 54.02% of their value over the last 52 weeks. Sangoma Technologies Corporation (NASDAQ:SANG) has a market capitalization of $127.528 million.
Donville Kent Asset Management made the following comment about Sangoma Technologies Corporation (NASDAQ:SANG) in its second quarter 2023 investor letter:
"We recently had a call with Sangoma Technologies Corporation (NASDAQ:SANG)’s Chairman and Interim CEO. • In their most recent quarter, they reported 18% revenue growth with service revenue growing 37% and EBITDA margins of 19.4%. Their SaaS revenue grew 10% organically and now represents 81% of revenue. • They are well along the path of bringing on a new CEO who should be able to improve communication to the market plus have the experience of running a business at a much more significant scale than where Sangoma is now. • Their team and market data confirm that growth and margins should remain strong. They don’t see erosion from a margin perspective going forward and they aim for 10% organic growth but most likely can do better than that. • The stock is currently trading on 3x EBITDA, roughly 4x cash earnings, and seems to have bottomed around the $5/share level."
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Sangoma Technologies Corporation (NASDAQ:SANG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
