Stockchase Insights
CubicFarm Systems
CUB-T
DON'T BUY
May 16, 2022
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. CUB has a net cash position of about $16M, and sales are growing nicely. Sales are expected to go from $5M last year to $77M next year. It is, however, still losing money, and with negative cash flow (-$30.5M last year). The sector got hyped last year, and the stock is down 37% in 2022 with the weak market for small caps. Its small size and cash flow add risks. Insiders own 10.6% directly and a holding company owns 16%. It has four analysts with an average target price of $1.92. While interesting, the current valuation means expectations are very high. Would like to see a few more quarters of high sales growth. There is time to wait on this one. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. CUB has a net cash position of about $16M, and sales are growing nicely. Sales are expected to go from $5M last year to $77M next year. It is, however, still losing money, and with negative cash flow (-$30.5M last year). The sector got hyped last year, and the stock is down 37% in 2022 with the weak market for small caps. Its small size and cash flow add risks. Insiders own 10.6% directly and a holding company owns 16%. It has four analysts with an average target price of $1.92. While interesting, the current valuation means expectations are very high. Would like to see a few more quarters of high sales growth. There is time to wait on this one. Unlock Premium - Try 5i Free