Q: What is your thoughts on iFabric as microcap investment?
5i Research Answer:
It is very tiny at $31M market cap, so risks are very high right off the bat. Shares have not done much in the past year but are up nicely over five years. Insiders own 66% which makes trading very thin and adds another risk. The balance sheet is fine and it is profitable on occasion (four losses in the past 10 years). Cash flow is quite low. The most recent quarter reported was strong. We don't really have much against it other than the risks noted here. BUT...we do not think the potential upside here is enough to justify the risks. Growth has been OK but hardly that impressive (sales up about 30% over seven years).