Q: What are your thoughts on this company? Is it too small to consider starting a small position? Thanks.
Shyam
Shyam
5i Research Answer:
Even with a 165% gain this year, BILD is only $65M market cap, so is certainly on the small/high risk side of things. Insiders own 4% directly but another 75% is very tightly held by four entities, so there is extreme concentration here. It has a nice revenue base but we note revenue is lower than it was four years ago. It is losing money but cash flow is slightly positive. Its online market place for builders has gotten some traction, but there is also economic sensitivity here. The balance sheet has some debt but not overly concerning. We find it interesting, but we do not like the liquidity situation nor risk here enough.