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A Few Dodgy Customers Don’t Necessarily Make Pareteum A Fraud

June 26th, 2019 · No Comments

  • As management implicitly admits, the company has a few ‘dodgy’ customers, start-ups that might not produce revenues, hence not all of its $1B backlog will convert into revenues.
  • But for a short thesis to pan out, most of its backlog has to be dud, just a few dodgy customers is no proof of that.
  • Given the booming industry, rapid revenue and customer growth, happy existing customers willing to buy more, critics want you to believe the company can only attract dodgy new customers.
  • The share valuation already reflects that investors assume serious backlog problems, discounting much of the company’s spectacular revenue growth.
  • If the company would not publish backlog figures, the whole problem wouldn’t even exist and the shares would likely trade much higher.

Source: A Few Dodgy Customers Don’t Necessarily Make Pareteum A Fraud – Pareteum Corporation (NASDAQ:TEUM) | Seeking Alpha

Tags: TEUM