There is no reason to believe that basic businesses don’t make money. Infact the most basic businesses are generally that ones that are cash cows.
Agree to your commentary of client concentration risk. But management has time and again said that they are preferred by their customers due to their execution record and their global presence. Business is a game of risk, hence there is always a risk of loosing client, contracts, business etc.
Given that they are just setting up the basic networking infrastructure, the deal size seems fair to me.
I agree to the notion that $2 billion revenue target a bit too much, hence not evaluating the business with that guidance in mind.
Also if you read commentary by SaaS players in US, you will notice that the reasons company is throwing around for delay in execution and in decision making is actually true and echoed by many.
Agree that 250-260ish level offer much more margin of safety!
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