Jason Donville Sangoma Technologies Corp. STC-T HOLD Mar 12, 2024

Another tough one. Deep value play. Management changes. Still tons of free cashflow. Next quarter, should hit guidance. Doesn't look like a big deterioration in the business, will take time to work through. Buy at these levels.

A favourite of his 3-4 years ago, but sold it after an acquisition, but paid a lot for it and that hit their profits. Also, executives sold a lot of stock. Decent company but there is better Canadian tech.

Very high free cash flow yields. Major transition in company as it moves away from M&A growth model. New CEO will be interesting to watch. Recent change in earnings guidance a little bit of a concern. Would recommend holding stock. 

It was a top pick in 2021 but has gone through a huge transition with a big acquisition. Has a new management team. With deterioration in financials it is not for growth or quality.

Good story, then bad, now good again. Poor job integrating acquisitions. New CEO, very impressive. Relatively strong collection of assets now being managed properly. Inexpensive. Moved from $5 to $8, will keep going.

Owned a large position a few years ago. Has since sold. However, new CEO is expected to be a lot better. Continues to watch the company, and might buy again down the road. 

Has been a wild ride in past years, but they are now on the right path under current managers. Metrics like margin expansion look fine. Is now trading at a huge discount to intrinsic value and can re-rate further as performance continues.

Previous business structure not very well integrated. New CEO very impressive. Still cheap, and he's looking at it.

The chart shows a massive spike up, massive drop, and now recovery in the past year.  They likely paid too much for a company in 2022 and were trading at a high PE. He had added shares in 2023-4 after a new CEO started bundling products, focus on margins and integrated companies. Has been doing a good job. He expects them to return to growth this year at 10% organically and 18% EBITDA margins. Looks cheap, half the PE of peers.