Q: Appreciate thoughts on this small cap. Nation bank has a $15 target on it. Thanks
5i Research Answer:
GIP is down 18% this year, bringing market cap to $88M. It trades at 14X earnings. Debt at $27M is higher compared with current cash flow ($4M) but it is in growth mode. Revenue is more than doubling from 2021 to 2024 estimates. It has historically lost money and a loss is expected in 2024. Operating as a by-product renewable energy company, it hits a few popular investment themes but really has not done much yet. Five analysts cover it, but it misses estimates more than half the time and the Q3 showed a loss over an estimated profit. Insiders own 2.5% directly. Interesting, but too early here for us and too risky right now. We would like to see higher cash flow even if no profitability.