SSTI_1 - stevehemingway/trading GitHub Wiki


tags: [source/bear-cave, potential/short, analyst/edwin-dorsey]

Shotspotter Inc.

Bear case:

  • It has been accused of helping to frame innocent people. It is the subject of a short sale report by Edwin Dorsey,
  • it is very expensive: foreward P/E of 150,
  • it rarely breaks above break even,
  • it pays out a lot of SBC (equivalent half its free cashflow),
  • it has never paid a dividend (and seems unlikely to in the foreseeable future).

Bull case:

  • there is a lot of gun violence in the USA,
  • maybe police forces don't really care whether it works as stated or not,
  • revenue has grown (about doubled in four years),
  • it's cash-flow positive, both before and after debt service (although SBC makes a big difference to that),
  • its shareprice is half of where it was in 2018.

Conclusion:

It's probably a crap company, but one that would be dangerous to short.

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