Q: LPS reported today seemingly compelling progress. Would appreciate your comments also. Thanks
5i Research Answer:
Revenue more than doubled, to $1.04M. EBITDA loss was reduced, to $392K from $884K. Margins improved, and it noted several new contracts increasing its backlog. The stock is up 52% this year. That being said, it is VERY tiny and it can be hard to attract new investors. It is losing money and cash flow is negative. Losses are expected to continue. Insiders own 14%. We think it is moving in the right direction, certainly, but as a micro cap ($29M) we do not follow it too closely and we would consider it too risky for a general endorsement.