Stockchase Insights Baylin Technologies BYL-T DON'T BUY Mar 25, 2024

Largest customer, Samsung, seeing a slowdown. Other divisions are booming, with a record backlog. Returned to profitability. 2024 will be a big year. Headed in the right direction. Wouldn't be surprised if they divested the mobile division. Stock's worth significantly more. Not for the faint of heart.

He targets 50 cents. A small, illiquid company. Buy it around 40 cents. Shares don't move much.

BYL has struggled year-to-date down ~55% as well as down 37% in the last three months. Revenues have declined this year along with weak margins, while continuing to operate at a net loss. The balance sheet is not particularly great either with cash of only $4.3M and a high net debt of $38M. Cash from operations has also gone negative in the recent two quarters. Fundamentally, BYL is very weak as it stands, and we would be comfortable moving on from it. Small caps are due for a rebound, but BYL has struggled with declining revenues and the high debt level does not entice us.
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Cheap. Goes in and out of profitability. Nice little business. Small. Stock's illiquid. Nice runway to price target, but could be a lottery ticket.

It is in the telecom services business and has struggled for years. It is an unprofitable micro-cap stock with poor liquidity. There are lots of other opportunities.

Things haven't worked out for them in recent years. They went on a spending binge, buying companies, then Covid hit and nobody could travel. Bottom line: they recently did a rights issue, cleaned up the balance sheet as the main shareholder remains supportive. The mobile antenna division was hurt the most as their major client (Samsung) suffered with a swing in cell phone sales, but the other three divisions are doing well. They should sell the antenna division, but debt is in good shape. Better days lie ahead. Average down if you're under water.

So dependent on Samsung mobile, and those sales slowed. Put that unit up for sale. Rest of segments are doing well, ups and downs, but long-term growth. Wouldn't be surprised if that attracted a strategic buyer for the company. 

They sold their Vietnam business and original mobile antenna business, volatile, but kept good businesses--satellite communication, embedded antenna and infrastructure. The stock has been rising the past 3 months. It's a prime take-out candidate.

Sold mobile unit. Leaders in embedded home, infrastructure, and satcom. Fixed balance sheet. Turned around, next year should be really strong with new product launches. Might be acquired. Excellent technology, solid clients.