This really just gives such a great overview of why BIG is such a solid growth company to invest in.
Social online video is where it is at and BIG is right in there killing it. Fantastic industry tailwinds and a great team right from the top down that is really stepping up.
There were some concerns about making acquisitions via share allocations but BIG has made it clear that they won't proceed with any deal that will cause too significant a dilution / distortion to its existing investors.
In any case, the alternative is capital raising to the general market / institutions to generate the funds to facilitate an acquisition which leads to guaranteed dilution. Through a share placement arrangement directly to the acquired entity, they cease to be just an acquisition and instead become a partner who believes in the value of those shares and is invested in the BIG story. It shows a real backing of confidence from their business partners and I think strengthens the depth of the company behind the investment.
This has been a truly fantastic ride for so many people who back their vision. I believe it will continue to be so for newcomers as BIG really kicks into gear this fiscal year.
From startup to making 10's of millions of dollars profit in a few years and currently at a MC of less than 10 times revenue. Hell, Xero is valued at something like 14 or 15 times its revenue and has yet to turn a profitable half! If BIG was as hyped up as Xero we'd already be at $6 to $7+ right now.
Grats to the BIG team and all backers for thinking BIG.
BIG Price at posting:
$4.73 Sentiment: Buy Disclosure: Held
