Voss Capital on X
And just to reiterate, of that 70% of the remaining revenue, Transaction Comps for the *least* valuable part keep (recently) getting acquired at 1.0x revenue, which would provide another 100% upside. $SWIR
Wednesday, September 29
Wednesday, September 29, 2021
Everything we published on this day.
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Voss Capital on X
Here is another sanity check and way to re-frame the $SWIR set up: It's recurring revenue is growing 25-35%, valuing it at 5x end of 2022 Recurring Revenue run-rate, the stock has 110% upside and you still get >70% of the revenue "for free"
Voss Capital on X
In July of '20, $SWIR sold their low-teens gross margin Automotive module biz for 1.0x LTM sales. The entire co is now valued 0.9x run rate sales (suppressed by >20% bc of component shortages) despite 36% aggregate Gross Margins & $200M of recurring rev w/in 18 months. EV= $483M
Voss Capital on X
Adding to our comfort around downside protection, $SWIR's module competitor Telit was just sold for 1x NTM revenue, which comps to the lowest margin piece of SWIR's remaining business. There is ~100% upside for the stock on normalized rev of $625-650M at 1.5x EV/Revenue.
Voss Capital on X
$650M of rev is imminently achievable as their recurring rev scales. We believe when their Vietnam plant returns to full production capacity early Q4, the stock's valuation will be hard to ignore and upside is bolstered by new mgmt team making aggressive + positive changes. $SWIR
