tag:blogger.com,1999:blog-3541352681651202123.post2470445232898611970..comments2023-12-27T00:31:42.598-08:00Comments on the patient investor's blog: OTCM: Commanding Marketshare and Scaleable Growth at 9x EBITDALong Cast Advisershttp://www.blogger.com/profile/13731550239184386639noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3541352681651202123.post-87409485520071320882016-03-18T19:01:20.039-07:002016-03-18T19:01:20.039-07:00how they've evolved over time is in the quarte...how they've evolved over time is in the quarterly / annual results. what happens to margins will reflect demand for new listings, plus the volume / price of OTC link broker dealer service and the market data licenses. Both are susceptible to consolidation headwinds, but I think are unlikely to be replaced. <br /><br />so rare does one hear attention called to rising exec comp; if only more investors were focused on it! but when you dig into the P&L the gain in comp is mostly offset by decline in marketing exp, and revenues have grown so much faster than TOTAL expenses. i mean, over last two years ending 12/31/15 ... <br /><br />net revs from $33M to $49M, +50% <br />total op expenses up from $25M to $31M, +20%<br />and EPS from $0.51 to $0.91, exactly $0.20 / year <br /><br />... so the rate of growth is slowing but it's still impressive. <br /><br />i own this b/c they have a unique and unusual property - it's essentially a payment platform at scale - and at scale it will generate cash flow. growth might occur as investments pay off over time in new venture related marketplaces or JOBS ACT listings - they are trying different ideas - but prob not from the "core" listing business. <br /><br />I can't predict the future but that's the framework of inputs I think about. <br /><br />if Coulson shows he's worth what he's getting paid and invests the capital wisely as he's done then returns will continue to grow, but not always at the same pace. i think the next dilution occurs with the series C at $19.62. that's a tradeoff I'm happy to make. <br /><br />thank you for reading ... Long Cast Advisershttps://www.blogger.com/profile/13731550239184386639noreply@blogger.comtag:blogger.com,1999:blog-3541352681651202123.post-72531065572838768352016-03-18T07:40:50.854-07:002016-03-18T07:40:50.854-07:00Any sense on the relative profit margins across th...Any sense on the relative profit margins across the various business segments and how they have evolved over time? What do you forecast steady-state future margins will be?<br /><br />Thoughts on on-going dilution from stock options? Running at 1-2% per year which is very high, and there has been no leverage on the comp. expense as % of sales line.<br /><br />Do you foresee continued growth in the # of companies on the OTCQX/OTCQB (in a material way) or will growth in corp. services be driven by revenue/user?<br /><br />What are the 1-2 key questions you would want to ask mgmt?Anonymousnoreply@blogger.com