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CalAmp filed on Monday June 3rd. What do you think happens now?

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What do you think of the recently presented results? From my point of view they are good. On the other hand, yesterday it corrected 19%

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Nov 17, 2023·edited Jan 28Author

The company briefly touched a price that a particular M&A group who has a reputation for doing well with these sorts of businesses made, and this offer was made almost 2 years ago, when earnings were materially lower.

While the company traded 2x more than its average volume, this change in price was dictated by less than $28,600 CAD in volume. Realitically these are sums which are small enough for a single person to represent.

This being said - actually discussing the results - earnings and cash flows were lower Y/Y, and they were driven by higher discretionary expenses related to advertising. This is an operational decision usually aimed at attempting to grow faster, which I'm in favor of given they have a modest cash pile rotting away on their balance sheet.

Across the board other line items were more or less the same on a higher run rate.

Thanks for the comment, cheers.

-Left

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When you say higher run rate I assume you mean y/y? Looks like top line was down sequentially. Is that not a bad sign or are we assuming some seasonality here?

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that was driven by hardware sales.

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Recurring also lower, albeit marginally. Was this expected? Don't know these guys well so maybe I'm off base here.

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This is a very small company, there isn't guidance or expectations. If you average the last 10 or so years, they've grown ARR at something like a mid-teens CAGR.

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