Q: What do you think about the company?
5i Research Answer:
Keep in mind we do not follow sub $50M companies too closely. LSPK is $30M. It has a large sales base, and sales are growing. But it has only ever made money once (2020) and debt and other obligations are very high ($87M). Cash flow has been negative in recent years. We like the 32% insider ownership. Sales only increased 1% in the last quarter with no notable change in the number of clients. To take a micro cap risk, we would like to see these numbers improve, or at least for debt to decline. Thus, we cannot give it a strong endorsement.