Redknee
Date of analysis: 28/07/2017 Price: CAD 1,10$ (USD 0,88$) Nb of shares: 108519936 (but special situation here !) Market cap: 119M Redknee - a special situation Redknee is a Canadian software company founded in 1999 (mainly involved in billing for Telecom companies) and was still managed by its founder Lucas Skoczvowski (till beginning of 2017) who wanted to grow its company via two acquisitions that did not produce the expected results (declining revenues, declining margins, losses,...) due to poor execution (Nokia Siemens Network in 2013 and Orga systems in 1995). The consequence is that the company breached covenants. On 10th August 2016, ESX Capital announced that it has acquired 12 500 00 common shares (11,55% of the company) at a cost between CAD $1,5 and CAD $1,7. The interesting thing is that ESX Capital is a specialized company in turnaround in the software environment. In December 2016, the company received an offer from ESX Capital, better than a previou...