One canadian blogger I really love to follow is Saj Karsan. I personally do not like all his ideas, but some of them gave me good hints about great companies. He is now a Seeking Alpha blogger (I assume he wanted to monetize his blog) and published a great article on Tellza lately. Following my lecture of his article, I’ve put TEL in my “Must do a due diligence” list of stocks and finally had the time to look into it this morning.
I propose you read his article here. He makes a good wrap up of the valuation and the businesses. I don’t have much more to add has Saj Karsan did a great job. The only thing is, since his article, Tellza bought a competitor (Matchcom) accretive 500k to profits immediately. I do not know the price of the 5M shares issued but at 0.15$/share + the 585k cash, it is an acquisition at a P/E less than 3! What a great job.
Anyhow, you got a 60% head-start discount and many new business opportunities given in for free.
It is a head I win, Tail I win way more situation. The kind I really love.
Disclosure : Author is long TEL.