Disclosure: Long SPCB. Please read our full disclaimer.
Every once in a while we walk out of a first meeting with a management team and are interested in immediately buying stock in the company they run. That was the feeling we had the first time we met with the team from SuperCom (Nasdaq: SPCB). We were so intrigued by our initial visit that we followed up the next day by returning to their office for a second meeting. Weeks later we became one of the company's largest shareholders.
What we saw, and still see, in SuperCom is the rare combination of:
- a highly incentivized management team with a track record of building shareholder value
- a corporate turnaround to which the market was giving no credit
- an acquisition (now complete) of the company's largest competitor that nearly triples the revenue base and grows EBITDA 2.5x
- a recurring revenue model with long term visibility
- a loyal customer base that's extremely sticky
- growth opportunities that offer the prospect of multiplying the top line
- a very low valuation
Read our full article on SuperCom here.