Q: What do you think of these two for a small position- too small and volatile or worth taking the risk?
5i Research Answer:
HG stock has had a big run, but market cap is still only $69M. It has a bit of cash but no revenue and negative cash flow. Insiders own 6%. We would consider it too risky and too early for serious consideration. GIII is $51M market cap. Again, no reported revenues and losses and negative cash flow. No analyst coverage, but insiders own 21%. We think HG has more potential overall, but we would not be interested in either today, and would like to, at least, see positive cash. We think any potential buyers will have lots of time here.