Pivot Technology Solutions Inc

Very interesting company. However, a very undercovered company. This is typically what happens with nano/micro cap stocks. Currently, there is 1 analyst as far as I can see covering the company, so if you have been, I wouldn't put TOO much weight into analyst estimates. Which right now, have 40% upside on the price, and 20%+ revenue growth in 2020 and 2021.

The issue I see with the company is its balance sheet. I'm not a fan of companies with negative working capital. It can work in some industries, but not in Pivot's case. They have very little cash, and although they have a ton of receivables on the books (money in the next 12 months) it's quickly eaten up and then some by its taxes and accounts payable.

Right now on a trailing 12 month basis they've got a payout ratio of only 30%. However, considering that through the first 6 months of 2020 the company has diluted earnings per share of only $0.01 and is paying a $0.16 dividend, it would have me a little worried, especially with the state of its balance sheet.