Q: Could I get an overview of this company? CEO just made a large share purchase. Do you feel it’s investable? Thanks
5i Research Answer:
Please also see this recent question. Since then the stock has had a couple of broker target/rating downgrades. Average target price is now $8.88. FORA operates cloud-based communities of people with similar interests, with 1,200 communities and 100 million monthly active users. Advertising forms a big part of revenue. Market cap is $100M, P/E 18X. Sales are near the same level as 2021 following a covid bump. Debt is about 2X cash flow. EPS is now expected to decline next year. Insiders own 4% but another 43% is tightly held. There is size and economic risk here. We consider it OK but our prior comments still apply.