Aside from the imperfect investor communication (dividend v buyback slide/out of date and incomplete corporate spotlight page) things seem to be coming together nicely. The company is surging through the break even threshold with $3.7m FCF forecast next year. I love these situations because the market will sometimes apply a growth earnings multiple to earnings which are growing off a tiny base. Even if there is no growth premium in the multiple, the percentage as opposed to absolute earnings growth is likely to be high so SP appreciation can still be large on a steady multiple.
The GMY relationship looks like it could turn out to be very lucrative given the commentary about the heavy discount to entrenched providers. Also very impressive that management have re-signed the two largest ATM deployers that were leaving at the time of the acquisition.
STL Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
