fishwithwings Posted October 25, 2018 Share Posted October 25, 2018 Super cheap. 2018 annual report attached.Evercel_3-30-2018_FS_-FINAL.PDF Link to comment Share on other sites More sharing options...
sbalsam Posted October 26, 2018 Share Posted October 26, 2018 Hey Fish, Do you have any older reports? Does the company provide investors with anything other than the annual reports? Steve Link to comment Share on other sites More sharing options...
SnarkyPuppy Posted October 26, 2018 Share Posted October 26, 2018 Do you have any actual insights to share? Or just pumping an illiquid stock? Not sure the point of this thread... "super cheap" is a hell of an analysis. Link to comment Share on other sites More sharing options...
bizaro86 Posted October 26, 2018 Share Posted October 26, 2018 Looks cheap, but lots of red flags too. Recent auditor change, with new auditor calling out a restatement. Fees at this level to PE sponsor. PE sponsor owns 20% of opco. PE sponsor takes management advisory fees from opco. Related party transactions with PE sponsor. Opco made large purchase from company controlled by COO. Not saying this won't work, but there is an argument that it deserves to be cheap. Link to comment Share on other sites More sharing options...
SnarkyPuppy Posted October 26, 2018 Share Posted October 26, 2018 Looks cheap, but lots of red flags too. Recent auditor change, with new auditor calling out a restatement. Fees at this level to PE sponsor. PE sponsor owns 20% of opco. PE sponsor takes management advisory fees from opco. Related party transactions with PE sponsor. Opco made large purchase from company controlled by COO. Not saying this won't work, but there is an argument that it deserves to be cheap. A few other things wrong with it too that haven't been listed but can be found in prior filings, but I'm not going to point them out given the nature of the post. Link to comment Share on other sites More sharing options...
bizaro86 Posted October 26, 2018 Share Posted October 26, 2018 Looks cheap, but lots of red flags too. Recent auditor change, with new auditor calling out a restatement. Fees at this level to PE sponsor. PE sponsor owns 20% of opco. PE sponsor takes management advisory fees from opco. Related party transactions with PE sponsor. Opco made large purchase from company controlled by COO. Not saying this won't work, but there is an argument that it deserves to be cheap. A few other things wrong with it too that haven't been listed but can be found in prior filings, but I'm not going to point them out given the nature of the post. Sure, that wasn't intended to be comprehensive. I hadn't heard of this one so took a look. That was what jumped out at me from a quick skim until I decided it wasn't for me. Link to comment Share on other sites More sharing options...
sbalsam Posted October 29, 2018 Share Posted October 29, 2018 @SnarkyPuppy - You refer to prior filings. I'd greatly appreciate your pointing me to these. I have not found any filings (other than the 2018 annual FS and Shareholder letter on the Company's website) and have checked SEC.Gov, OTC Markets and the Company's website. Thanks, Steve Link to comment Share on other sites More sharing options...
fishwithwings Posted October 30, 2018 Author Share Posted October 30, 2018 Hey Fish, Do you have any older reports? Does the company provide investors with anything other than the annual reports? Steve Attached. Disclosure: I am long the stock. Do your own work before buying.FY_17_EVRC_letter_and_audit.pdf Link to comment Share on other sites More sharing options...
fishwithwings Posted October 30, 2018 Author Share Posted October 30, 2018 Looks cheap, but lots of red flags too. Recent auditor change, with new auditor calling out a restatement. Fees at this level to PE sponsor. PE sponsor owns 20% of opco. PE sponsor takes management advisory fees from opco. Related party transactions with PE sponsor. Opco made large purchase from company controlled by COO. Not saying this won't work, but there is an argument that it deserves to be cheap. Sure. But on the flip side, I think the guys @ Corona are pretty good capital allocators: Printronix: Evercel invested $18.0 million for 80.1% ownership of Printronix Holding Corporation (“Printronix”) in 2013. Since the original investment, Evercel has received $26.7 million of distributions from its investment and continues to own the 80.1% of Printronix it acquired in 2013 SharpSpring: Evercel invested $2.1 million in public shares of SHSP, at prices ranging from $3.90 to $4.32 per share at an average basis of $3.97 per share and $8mm in a convertible note (convertible @ $7.5). Currently trading around $11. Points.com: Evercel realized a net gain of 30% in less than 6 months on this investment. -- The company is completing a turnaround and has a strong balance sheet, earnings momentum and is trading at a cheap valuation on both an asset and income basis. 2019 results should be similar to 2018 (see below for my projections): Also, Printronix is pretty good biz with $24mm in recurring revenue (consumables biz). This business model creates a source of high margin recurring revenue for the Company. Mgmt also recently restructured the business and more cost savings are on the way ("The Company invested more than $7.0 million over the past three years to consolidate its operations and ramp up the new Malaysian facility, which is expected to result in significant cost savings in the near‐term due to the benefits of overseeing one facility instead of three, as well as the additional benefit of lower operating costs in Malaysia"). All criticism and feedback are welcome. This is the internet after all :) Link to comment Share on other sites More sharing options...
sbalsam Posted October 30, 2018 Share Posted October 30, 2018 Thanks Fishwithwings. Steve Hey Fish, Do you have any older reports? Does the company provide investors with anything other than the annual reports? Steve Attached. Disclosure: I am long the stock. Do your own work before buying. Link to comment Share on other sites More sharing options...
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