This Platform Business Can Double

A pair of secondary offerings have wrecked the stock, but experienced, successful owners can get shares back on track

Highlights:

• Sentiment is bearish: investors clearly fear competition and a cyclical reversal.

• Yet the business continues to grow, with guidance for mid-teen growth and stable EBITDA margins.

• Both shares and multiples are at all-time lows — investors are ignoring the impact of current investments and a strong secular outlook for the industry.

• Even the CEO admits there’s a “cap structure problem”. Fixing that problem can allow the stock to re-rate. Fundamental analysis suggests a clear path toward 100% returns.