Company Highlight: Lightspeed Commerce Inc. (LSPD)
The top performer of September was Lightspeed Commerce (LSPD) whose stock price was up 28% on the month, down 20% year-to-date, and up 17% from the year prior. Things have been improving over the last year but LSPD remains volatile with a 52-week range of $16.04-$28.73.
LSPD provides cloud-based software subscriptions and payment solutions, empowering small and midsize businesses, retailers, restaurants, and golf course operators. The company operates globally, serving diverse industries, and it continually enhances its offerings to remain competitive in the e-commerce space. Roughly 62% are transaction-based, 34% of its sales are subscription-based, and the remaining 4% are hardware and other.
LSPD jumped at the end of the month when news broke that it was working with a financial adviser to explore a potential sale and other options. LSPD has confirmed the report and issued a press release that it had entered a strategic business review to discuss being taken over. Many analysts raised their target prices as a result on anticipation that LSPD could receive a significant premium. Going private seems like a potential option. While the premium is unlikely to be anywhere near LSPD’s all-time highs, a significant premium from current levels is enticing investors.
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A nightmare. They reported a horrendous quarter today, losing $1 billion a month from this machinists' strike, and they've forgotten how to make planes. That said, buy a lot of shares when they do a secondary offering (much lower than the current share price) to shore up their balance sheet to survive. Why buy? They enjoy a duopoly. After this strike, Boeing will be back to profit again. Demand for airplanes remains strong, a half-trillion dollars worth. The company has poor, arrogant management, and a lousy corporate culture.