CSI Update, August 31,2020-Free Blog

Of our closed out positions on the Blog, since inception, we have had 71 winners, 19 losers for a 79% win-rate with an average gain of 35.7%.

We will continue to update on the remaining stock positions individually until they are all sold.

SYNC reported Q2 earnings. Not bad IMO. Revenues were $18.2 million compared to $22.2 million last year (excluding the AT&T revenues). Their software and services revenue actually increased a bit to $10.9 million from $10.6 million last year but their portal and advertising segment got whacked by COVID and was $7.3 million down from $11.6 million. Adjusted EBITDA was $455,000 compared to $1,615,000 last year. They have a $10 million cost reduction plan going on to increase profitability. May valuation rose to $2.59 from $2.48. SYNC continues to get no respect in the market

ATEC reported Q2 earnings. Revenues were actually up to $29.6 million from $27.3 million, but they lost $15.8 million compared to a loss of $12.4 million last year.  They did way better on revenues than I expected, but they continue to burn cash which was down to $31.1 million and they filed for a shelf registration to sell up to $200 million of additional stock from time-to-time. Adjusted EBITDA was a loss of only $1.1 million but they really do have to pay interest etc. While they seem to be doing a fairly good job on revenues, especially in this COVID time, the possible additional share dilution and continuing losses make me queasy. My valuation fell to $3.92 from $4.27.

AVID reported Q2 earnings. Not bad at all. Revenues were down but profits were up. Revenues fell from $99 million to $79 million but Non-GAAP net income rose from $885,000 to $5,082,000 ($.12 a share). My valuation rose to $14.48 from $11.77.

August 2020 Legacy Positions:

SYNC

Share cost $2.56

Current Price $1.16

Lifetime Gain (Loss) (55%)

YTD Loss 24%

Current Valuation $2.59

Price to Value ratio 45%

Prior Valuation $2.48

ATEC

Share cost $7.06

Current Price $5.99

Lifetime Loss 15%

YTD Loss 15%

Current Valuation $3.92

Price to Value ratio 153%

Prior Valuation $4.27

AVID

Share cost $8.35

Current Price $8.10

Lifetime gain -3%

YTD Loss 6%

Current Valuation $14.48

Price to Value ratio 56%

Prior Valuation $11.77 

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