Trading at 71% of Cash Per Share, Quality Compounder, Record Backlog Going Into Q4
$35M Cash, $24M Market Cap, Three Profitable Segments the Market Is Valuing at Zero
To read our full disclaimer, click here.
A tiny healthcare company just reported Q3 earnings.
The market yawned.
But here’s what actually happened:
Net income: $1.7 million
Cash on hand: $34.9 million
Market cap: $24.2 million
Read that again.
This business is trading below its cash balance.
The entire operating business - three profitable segments generating $62 million in annual revenue, 87% recurring revenue in one segment, improving margins across the board - is being valued at less than zero by the market.
It gets better:
Revenue up 9% year-over-year.
Operating cash flow of $2.8 million in Q3 alone.
Deferred revenue climbing, signaling sticky subscription relationships that forecast stable topline ahead.
Most investors won’t look twice at a $24 million market cap healthcare company trading over-the-counter.
They see small, illiquid, boring.
I think they are missing the asymmetry.
Today’s company is...