Thoughts on LSPD.TO

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What are your thoughts on LSPD.TO

I know it is a recent IPO but growth looks very good…

Thanks

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Asked on June 27, 2019 3:01 pm
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Hey Randy. One thing I can tell you right away without even looking at it much is the stock is extremely overpriced.

The company grew revenue by only 33% last year, and adjusted EBITDA decreased from only a loss of $4.3 million to a loss of $4.1 million. Recurring payments also went up 33%. Analysts have the company pegged around 33% growth again this year. It's current valuation has significantly more growth priced into it than this.

Solid company, but no matter how solid the company you have to get in at a good price. It's trading at almost 40 times sales and 15 times book. The company is bleeding money currently, losing over $5.50 a share.

In my opinion, I'd personally avoid it. You may have the possibility because it is an IPO for it to run up even more, there tends to be a lot of hype behind them. But digging down into the fundamentals, you're paying a very high premium. This company will have to hit it out of the park earnings wise on a very consistent basis for its price to stay stable.

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Posted by Dan Kent
Answered on June 28, 2019 1:46 am
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Hey Randy. Going to look into this and I will post on here as soon as I have.

Cheers

Dan

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Posted by Dan Kent
Answered on June 27, 2019 4:45 pm