Q: Is this company in essence a lottery ticket or is there something worth considering?
Jim
Jim
5i Research Answer:
BAMI went public via a reverse takeover. Market cap is now $177M. One analyst (Cormark) follows the company. The balance sheet is strong, and it has a decent revenue base. It is expected to see a nice EPS profit next year, and is cheap if it can achieve this goal. As a content provider, we are not sure it really has a 'moat' because there is so much content being created always. Insiders own 4%, FFH owns 23%. While it needs to be considered higher risk, we would not put it into the 'lottery' category, considering an expected $300M in revenue and upcoming decent profitability. We think it can be watched but see no rush to buy at this time.