Q: Hi Peter, I was wondering what your thoughts are regarding Redishred's financials. Overall what do you think of the company?
Thank you
Thank you
5i Research Answer:
EPS of ($0.0739) missed esimtates of ($0.03) and sales of $16.82M beat estimates of $15.27M. Its balance sheet is fairly strong, it is growing, and it generates positive free cash flows, but, with its tiny size, high debt and high valuation we would only feel comfortable holding on to an existing position at this time. Growth has been good and it generates positive free cash flows, but it is small and continues to issue debt. We would consider it to be a high-risk name, and would prefer to see more liquidity in its trading and earnings growth before initiating a position.