QUIS.V

0
0

QUIS.V has held up well during the growth sell off. I’m noticing companies that I work at/worked at switching over to Microsoft Cloud platforms. (especially with more remote work) I want to get your thoughts on this company. I have a speculative position in it – looking to add.

Marked as spam
Asked on April 15, 2021 3:37 pm
0 views
0
Private answer

Awesome thank you!

Marked as spam
Posted by Mahi Annalingam
Answered on April 16, 2021 8:22 am
0
Private answer

Hi there,

Yeah, it certainly has been doing quite well. I think one of the main reaons is because it has been making a few interesting acquisitions. It acquired Mazik - a virtual health care stock that generated $10M in revenue and 2.1M in ebitda which is built its end-to-end business operations for medical teams and patients on the Microsoft Dynamics platform. So clearly some potential synergies here.

Secondly, it announced its intentions to buy BankCard USA which is a payments provider. It generated 29M in revenue and positive ebitda of 11.2M.

So that is two acquisitions that added around $40M in revenue and 13.3M in EBIDTA. QUIS is only trading at a P/S ratio of 5.9 which is quite reasonable. Add the 40M to the 56M it generated over the last year, and all of a sudden, that P/S ratio drops to 3.5 which is even better.

So this is why the company has held up. QUIS is a negative EBITDA company but it added two companies with strong revenue and positive EBITDA at a reasonable price. I like it as it is not trading at astronomical valuations despite its runup. Sure, it will be volatile for sure as it is still a small cap, but it appears to be doing the right thing. This isn't a company jumping on fluff news.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on April 16, 2021 5:16 am