My assumptions on your knowledge is based on your grasp of the interpretation of the annual report and the company as a whole through your posts. Like I said earlier you are making a mountain out of a molehill and these are not red flags but more small bumps that happen to all companies every year. The terrible model you mention that 3PL has is actually a fairly common one so if you think it's bad then you will probably hate most of the online based companies that are growing at fast speeds. But there are a lot of things o actually like about being in this space with costs, margins and growth usually far superior to traditional brick and mortar. With 3PL and similar companies, my focus is on revenues, costs, cashflows, business model and growth potential as my primary concerns and most metrics are sound in this instance. Understanding the cashflows in a growing, expanding online business is crucial to have a better handle on where its heading and potential, thus it's easier to value it. I tend to value high growth stocks at a higher premium than the average company so usually yo are looking at 20x earnings at the least if the company ticks most boxes. Of course there are exceptions and some stocks trade at much higher multiples. Now as to 3PL's original float price, personally I thought it was way too high which in a way is now justified with share price below float price.
And with IPO's there are positives and negatives hence smaller companies will look to backdoor list to avoid the large one off costs associated with it. Do I agree with it? Each to their own, I only look at the company fundamentals as I understand that IPO's are done to either let vendors realise their profits and have a greater access to capital or both.
In summary it's good that you do your own research but i don't think you are looking at what's important in the case of 3PL.
3PL Price at posting:
$1.87 Sentiment: Hold Disclosure: Held
(20min delay)
