Agree. I think the odds are slim this business is still public in 5 years - look at Richard's history.
It isn't cheap on headline EBITDA multiples figures but worth remembering:
(a) they expense all their software devex, despite a good chunk of it obviously being more like growth capex (i.e. building brand new products) (b) there's a $10m corporate overhead which an acquirer can remove (c) because they pay software commissions on TCV, and they're selling nearly 2x TCV annually relative to software subscription revenue running through the P&L, their comp structure is depressing today's P&L.
Management obviously know this which is why they continue to buy back stock.
RUL Price at posting:
$1.43 Sentiment: Hold Disclosure: Held
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