Q: Please comment CWL's private placement for $2.90M and its value $0.80 per share and its recent quarter result.
Thanks
Ma
Thanks
Ma
5i Research Answer:
About a third of the deal went to insiders, which we like, but we have to note we always find it curious that a company that turned down a $1.80 to $2.00 privatization offer (from DHR) in 2015 is now willing to sell shares at 80c eight years later. Revenue fell 38% to $26.2M, but profit rose 8% in the quarter, to 6c per share. Partner count rose 12% and good cost control helped profitability. There are no estimates/analysts. We would consider the results decent, considering, but of course would prefer revenue to grow. But it is a highly cyclical business. Considering high employment, we did expect less of a revenue decline.