Q: Thoughts on earnings and add to,hold or sell? Thanx.
5i Research Answer:
GRA's record of missed earnings continues, with another miss recently. Revenue rose 7% to $33.8M. Margins and EBITDA were fine, the company just needs to forecast better. Decent growth is forecast, but losses are expected to continue for at least the next two years. Cash flow is barely positive. We would like it better at a lower valuation. Market cap of $414M is high considering a low sales base now and expected losses. The stock really hasn't done much. We like that MRE owns 22.6% and insiders own 8.3%. We would lean towards HOLD but we need to see better execution here. The balance sheet is fine, and there is potential longer term.