"Strong Buy" ???
If I try to understand the logic of the 3/23 AG press release and ignore the bulk that deals with management changes, which everyone knows are always positive, I'm left with this:
The purchase of the $7 million Colsilium business for approx 4 million (source: my memory, so perhaps you want to check this figure yourself) was a good purchase. Simultaneously, the market, by valuing BASEA at 40 million, fails to properly evaluate the potential of BASEA's product offering.
Basea competes in the same field, has fewer customers and less revenue than Consilium's division, yet the market cap is an order of magnitude greater than private market value implied by the Consilium purchase.
IMHO, at these prices the market is currently discounting BASEA as if they are executing reasonably well.
Regards,
spiny
PS -
As an aside, I'm really not sure how to interpret "outstanding buy" in AG analyst-speak, as in:
"we strongly feel that Base Ten Systems, Inc. Class A common stock is an outstanding buy."
does outstanding refer to a currently existing buy that they "strongly feel" needs to be reiterated, or do they feel (strongly or otherwise) that the stock is an "outstanding" buy. If the latter, where does "outstanding" fit in the AG spectrum of recommendations? Is it stronger or weaker than a strong buy, regardless of the intensity of the feeling about the recommendation itself.
SN |
