Q: Stingray released a very good earnings report last night and also announced a major acquisition, which they are calling transformational. The stock is up about 15% on the news, but still trades at a pretty cheap multiple. What do you think of it after these announcements? A couple of comments about it in the Forums section by Murray and I.
5i Research Answer:
Results were quite solid and the Tunein acquisition looks good. The stock is getting multiple broker upgrades, and market cap is approaching $1B, which can bring out new eyes. With a 2.56% yield and priced at only 9X earnings, we think more investors are going to start paying attention here. Insiders own 16% and the outlook looks good here, with cash flow growing nicely.