- 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.
A Few Dodgy Customers Don’t Necessarily Make Pareteum A Fraud
June 26th, 2019 · No Comments