Q: Hi. I am looking for a small cap for the speculative portion of my portfolio. Can I get your thoughts on these companies. Would you consider any of these names worth buying?
Thank-you. ABBAX, Better Home and Finance.
Thank-you. ABBAX, Better Home and Finance.
5i Research Answer:
ABXX please see this answer. Comments are very much still valid, and the company is now $1.7B market cap. Cash flow remains negative.
ELVA please see this answer. It continues to run hard, up 26% already YTD. There has been no news since our last answer.
BETR is a digital home finance company, market cap $550M. Shares are up 223% in the past year. The balance sheet is decent, and it is growing fast, with revenue to approach $300M this year. But, it is still losing money, with highly negative cash flow (-$215M twelve months). More losses are projected. Insiders own 3%. It has skeptics: the short interest is 18%. It is interesting, but it is going to need new capital soon. We would consider it highly speculative.