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Pareteum’s Blowout Quarter, But Some Doubts Linger

August 18th, 2019 · Comments Off on Pareteum’s Blowout Quarter, But Some Doubts Linger

The company is in hyper growth, although a considerable part is due to acquisitions. Given the markets for CPaaS and IoT/Smart Cities are still in the early innings. We expect that growth to continue for quite some time. While not unusual for a company at this stage, worries about cash outflow and receivables linger and […]

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Tags: TEUM

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

June 26th, 2019 · Comments Off on A Few Dodgy Customers Don’t Necessarily Make Pareteum A Fraud

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 […]

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Tags: TEUM

The Short Thesis On Pareteum Isn’t Supported By The Data

May 19th, 2019 · Comments Off on The Short Thesis On Pareteum Isn’t Supported By The Data

Critics are making too much about Pareteum’s supposedly large problem with the quality of its backlog. Management itself implicitly acknowledges the problem and has guided accordingly. There is no data available that suggests the problem is worse than management guides for. In fact, the data point to the opposite. Q1 was a solid quarter, another […]

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Tags: TEUM

Our Concerns About Pareteum Were Overblown

May 12th, 2019 · Comments Off on Our Concerns About Pareteum Were Overblown

We halved the position of Pareteum in the SHU portfolio as concerns were raised by reputable SA authors which lessened our comfort level. We have reasons to be extra careful with these small stocks, forcing ourselves to manually override any cognitive bias on purpose. However, in the ensuing discussion, we recently were confronted with valuable […]

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Tags: TEUM

SHU Portfolio: Why We Cooled On Pareteum

April 17th, 2019 · Comments Off on SHU Portfolio: Why We Cooled On Pareteum

The company is going gangbusters and in fact the whole sector is rapidly growing. The two acquisitions the company executed recently seem a good fit. Yet the weight of evidence is that the company is too aggressive with its backlog numbers and/or conversion rates. While as of yet, there isn’t any compelling evidence that management […]

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Tags: TEUM

Pareteum Is Firing On All Cylinders

April 7th, 2019 · Comments Off on Pareteum Is Firing On All Cylinders

The company experienced an epic rally since December on very high volume, finally rewarding a company transformation. Despite that rally, the shares are still very reasonably priced at 4x sales, we think the recent correction offers a great opportunity to get in. The company offers great revenue visibility and operational leverage. Source: Pareteum Is Firing […]

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Tags: TEUM

SHU Portfolio: What To Expect Of Pareteum’s Figures

March 16th, 2019 · Comments Off on SHU Portfolio: What To Expect Of Pareteum’s Figures

After rapid growth and acquiring two companies in quick succession, we get an updated view where the company is heading. We think this is not yet an earnings story even if 2019 guidance could tell us quite a bit about synergies and operational leverage. So the most important data point to look out for is […]

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Tags: TEUM

Why Pareteum Can Be A Multi-Bagger

March 6th, 2019 · Comments Off on Why Pareteum Can Be A Multi-Bagger

The company is operating in a fast-growing market with a SaaS business model that we and Wall Street love. The company has exploded organic growth, customers and backlog, and the value proposition is significantly enhanced by two acquisitions. While the share price has rallied strongly, it came from ridiculously low levels, and the shares are […]

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Tags: TEUM

SHU Portfolio: Performance Update And Where We Would Add

February 25th, 2019 · Comments Off on SHU Portfolio: Performance Update And Where We Would Add

Nearly 40% up after less than 17 months, we can’t complain, especially with the couple of triple-baggers in the portfolio. The Chinese stocks have disappointed though, and Nano Dimension waited far too long with getting finance, with a disastrous result. We’re most likely to add to Pareteum and BioLife, the first is still undervalued, despite […]

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Tags: BLFS · TEUM

We’re Buying Pareteum, Here Are 5 Reasons Why

February 1st, 2019 · Comments Off on We’re Buying Pareteum, Here Are 5 Reasons Why

The company’s organic growth is in triple digits and its backlog keeps accumulating nevertheless. Two acquisitions will produce plenty of synergies, cross-selling opportunities, and a more compelling platform. Despite the share count going through the roof, the shares are still very attractively valued if management projections are even remotely accurate. Source: We’re Buying Pareteum, Here […]

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Tags: TEUM