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G&A being 3x (last Q) and 9x gross profits is pretty rough. Yes, they're subscale and have a lot of cash to deploy, but rolling up online businesses isn't 'easy'. Anyone can go on Empire Flippers and buy up cheap web businesses. These are cheap for a reason! IMO they're good for owner operators to buy and run, but these are far from passive investments. Can't just buy raise capital, buy a ton, use the cash flow to raise more capital because its kinda like a franchise. For the numbers to make sense owner has to put in a lot of work. Can always hire people to 'do the work', but then that 3x ebitda business becomes unprofitable because the salary of the guy you're paying to do the previous owners workload is more than the profits!

I've sold a web biz to a rollup company many years ago and they've bankrupt now. I can single handedly run a profitable web biz with a few freelancers because I can micro-manage everything. The rollup has no idea what its doing and doesn't have their focus 100% on that one asset. So they neglect things and run any individual asset poorly. Simply buying more unrelated assets just makes things more confusing. I've never seen these work out.

Several online media rollups include EGLX, SLGG (was short both, only short SLGG now). These two are in the gaming niche. WeCommerce tried rolling up a bunch of ecomm related software businesses and isn't doing so great. No one seems to be making money in this space. I know these aren't perfect comps, but no one has figured out how to make this work. The positive side here is that they have a huge net cash position.

This *could* work out with an EXTREMELY savvy owner/operator, but it's a long shot. The net cash position is nice though. Will dig a bit deeper into their assets later out of curiosity though. I've only scratched the surface here.

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I think it is important to note that your share count is wrong. You're possibly over valuing net current assets per share as a result. Per OTC Markets: "Outstanding Shares: 5,110,195 as of 11/14/2022"

Not a knock on your analysis, but their filings were very confusing on detailing out how that number is reached. It requires a cross reference of the IPO documents, the S-1, and recent filings to understand final share count.

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