I think this was fairly anticipated. No one was expecting them to hit it out of the park. Jim clearly wants to grow the business through capital raises and acquisition and not through the hard work of organic growth.
As others have already rightly pointed out, the two glaring problems are CEO remuneration and bad debts. To see the total increase in revenue be matched by bad debts is simply appalling. We are talking bad debts at approximately 25% of the company's revenue. This means roughly 20% of the money the company lends out or invoices customers for they don't expect to receive. That is crazy. That's like having a fruit and veg store and watching every 5th person walk out the front door with an arm full of veggies without paying. At some point, you need to change the way you're doing business.
Having said that, I think the market cap is fair at these prices. May even see buying come in given the revenue growth. However, I think there is a real opportunity for a CEO change at this point. If someone big could get enough of the company without pushing price too far, it could be quite an attractive hostile takeover target. A CEO for a company this size and this profit level should be getting $300k plus performance based bonuses. This means the company could attract some real talent with their current remuneration.
Still a holder, I don't think this report changes much long term, but definitely a little disappointing short term.
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