My thoughts are still the same. If I was going to buy, it would be with a smaller allocation. It's funny, that question that was asked a year or so ago today, Zedcor faced a 30%~ drawdown over the course of the tariff turmoil. This is kind of what I am talking about.
These stocks tend to do very well during bull markets. What I really want to see is how well it performs during times of volatility.
We're trading at 45x EV/EBITDA at this point in time. Which, is very expensive unless this company can keep growing at the pace it is. Because it has negative free cash flow, this is likely to come from share dilution and debt. In 2024, the company added around 33%~ to its debt load and also issued 33% more shares.
I am not saying this is a bad company. It's just in a stage of growth where I typically do not invest.