TDY 0.00% 19.0¢ thedocyard limited

I've been keeping an eye on TDY to see if the growth was there...

  1. 9 Posts.
    lightbulb Created with Sketch. 2
    I've been keeping an eye on TDY to see if the growth was there to buy in, but wasn't looking promising from the financials over the last 8 months. When I saw the announcement about Ansarada it looked really promising - I didn't know much about Ansarada's performance but from the joint TDY and Ansarada presentation, their growth is declining! So it looks like two low growth companies 'merging'.

    If you have a high EV/Revenue multiple, you have to have growth - and these two businesses look ex-growth.

    I'm not surprised Ansarada couldn't get their IPO away given they 'look' ex-growth, which explains why they would give TDY a shareholding that is more than their relative revenue contribution (i.e.TDY of <$1m p.a and Ansarada's revenues of $20-30m) - so this would suggest that Ansarada's main objective was a reverse IPO, not acquire TDY for strategic and financial benefits.

    I know the raise is being underwritten - but main questions are:
    • how much of that has been taken up by retail holders;
    • what is the lock-up arrangements for any underwritten shares still held by the underwriters
    • what is the plan to actually grow revenues (not just revenue synergy but actual market penetration against competitors)
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.