DOC’s revenue growth has slowed substantially in recent quarters compared to previous years, it is still unprofitable, size risk is meaningful, and it has net debt of $10M and still burning cash (-$18M in the last 12 months). It is going to need more capital. We can't endorse it. DCM has had good momentum recently in terms of revenue acceleration, with its recent acquisition. Debt is still quite high (net debt/EBITDA is around 5.1x) as DCM but we like DCM’s fundamentals and management. The Donnelley acquisition closed in April, so it is still fairly early in the company's transition. The stock has done well, yet is still cheap if it can hit its earnings targets. We would consider it a decent small cap today, but would start buying slowly if interested, as there is economic and execution risk here, and we would prefer to see lower debt. We expect debt will be paid down, but until it is risks are quite high.
5i Research Answer: