Kratos would be worthless if given an industry free cash flow multiple.Giving them the benefit of the doubt, it is very easy to justify 45% to 75% downside risk (.15 to .30/sh) Mercury Systems Inc.Ironically, since the Luxembourg dual listing in August of 2016, Globant now files insider selling transactions electronically with the Luxembourg stock exchange.We find it peculiar that Globant now files insider selling transactions electronically with the Luxembourg exchange and does not follow that same protocol with the SEC.Further, the four founders all set up both revocable and irrevocable trusts.All four founders in aggregate transferred over 3.0m shares (~m and ~10.4% of total share count) to irrevocable trusts at some point between August 2014 and January 2015.
Rather, it generates cash from trading investment securities.
Cash Flow And Adjusted Earnings Metrics Reported By Globant Are Potentially Deceptive: We warn investors not to rely on Adjusted EBITDA as a cash flow proxy.
Globant’s bulls will point to a growing upward trajectory in Adjusted EPS and EBITDA.
Insiders Selling Is Staggering: Insiders have sold (or transferred) over 70% ( m) of shares since Globant’s IPO in July of 2014.
We think investors may be unaware of the magnitude of selling by Globant’s founders and other insiders.