June 2012
2 posts
The Curious Case of RealPage (Nasdaq: RP)
RealPage (NASDAQ: RP), a real estate software company, is a work of valuation fiction that can only be created by Wall Street.
RP sells software to property managers. In the trailing twelve months, RP generated, on a GAAP basis: $1.14 million of net income, EBIT of $4.6 million and EBITDA of $33.67 million, which produced a whopping .87% ROA, .44% ROIC, .55% ROE and a 12.9% EBITDA margin.
Of...
Diamond Foods' Strange Valuation
It has been an interesting week for Diamond Foods. They missed the 180-day NASDAQ deadline to file their delayed financials. NASDAQ will likely issue a delisting letter and Diamond will ask for a review hearing.
Market participants appear to be speculating on the severity of the fraud given the delay in filing the restatement. It is hard to know, however, what to make of the delay. I had a...
