Slightly skewed to the bulls side but Rhodium's bad trade not being handled on Kratos is very important news because it validates $TRIT's product-market fit.
I don't think Rhodium not routing all its trades through Kratos is a reason there couldn't be fraud here, as any knowledgable bad actor would think to disguise the scheme using other platforms
The counterpoint about Koneru leaving Rhodium is strong, but the concerning trend is that's twice now where Koneru (and Maurer with Exxova + not buying Rhodium) has left a company and it has imploded. That's the true concern.
Make no mistake, I am long, but I think its very important to be critical of other bullish reports for my holdings.
Execution (and time as a byproduct) fixes reputation concerns. That starts tomorrow with what is basically an earnings report.
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40.7M YTD revenue (17M in Q3)
24.2M YTD net income (10M in Q3)
Run-rate revenue per trader 1.03M Q3 vs. 750k Q2 (37% increase)
Q3 traders 66 vs. 61 in Q2 (8.2% increase QoQ)
The 66 traders could have been a much larger number but was limited by internal bandwidth. Significant senior exec. hiring initiative is ongoing, touching Europe, North America, and Dubai (already hired).
Recruiting a Chief Revenue Officer
171.6M in cash on hand as of 11/30. Open to accretive M&A to assist organic growth
Koneru will be buying shares when the trading window opens
A few companies I am considering initiating a position in once I do more diligence and get through the other names in a long research list:
$GOCO: ML for Medicare Advantage, 36% proj. revenue growth for 20x forward earnings, binary event risk if Biden gets a public option passed (requires Dems. win both GA runoffs), significant customer concentration, great writeup on this by @richard_chu97richardchu97.substack.com/p/gohealth-an-…
$FOOD.T ( $GDDFF) One of many meal-kit delivery companies [dominant in Canada] but big differentiator is budding expansion into online groceries, meal-kits are highly promotional and are a high churn area vs. online grocery which could be a big hit, 2021 churn is a major question
$TRIT Alright, so the short report doesn't seem too notable given the Rhodium news (which is notable) broke before it was published. If anyone has read the full report behind the paywall, please correct me if wrong. Given the market reaction since 11AM EST, I'll focus on Rhodium.
On the surface, losing a customer who represents ~10% of revenue is obviously bad, especially when losing them to
On the other hand, reiterating guidance despite losing said customer is pretty impressive.
Furthermore, $TRIT trades at a well below market multiple (~10x 2021 earnings), so unlike $FSLY (similar cust. concentration issue), where any slight change in the growth trajectory violently affects the stock, Triterras doesn't need to smash estimates to stay afloat
$TRIT up big off this analyst note which reads very bullish.
I tend to ignore PT of early stage companies such as Triterras, but there are some other key points here I did like
First, the comps chosen were $TW and $MKTX which trade at roughly ~36x and ~51x 2021 EBITDA
$TRIT trades at 14.1x 2021 EBITDA with much faster growth and worse EBITDA and net margins
Triterras deserves to trade at a much lower multiple until it proves it can scale its ecosystem
The margin profiles of these comps fit $TRIT mgmt. projections pretty well, so while they are on the very high end of the total comp set laid out by mgmt., Oppenheimer choosing them isn't cherrypicking to me.
Always hard to quantify the value of partnerships, but the $CWH $RIDE agreement seems very bullish for $CWH
$4M cash outlay to prep 170+ service locations to assist EVs (not just electric RVs per Marcus if I heard correctly)
Good Sam Services revenues are ~60% gross margin vs. a weighted average 31% gross margin for the rest of the business
Pursuing partnerships in their higher margin segments is a smart way to expand margins quickly with minimal upfront investment
Yes, electrified motorhomes are a cool concept and a big development, but by preparing their servicing locations to assist EVs of any type, this is likely not the last partnership to provide servicing to an EV manufacturer