Triterras, Inc. - Show The Money
Summary
- It's not often a downgrade to SELL results in a sharp pullback in a stock by 30% in less than two sessions, but it's time to revisit the call already.
- The sell-off in TRIT shares are overdone. A wave of shortseller reports appears to rely on flawed blockchain data, inaccurate assumptions on affiliate % traffic, and slanderous claims against management.
- We still want to see the Company's FY21 (ends 2.21.2021) audit, confirmaton of its approved $50MM share buyback, and filings for insider purchases.
- But with management confirming its guidance and model twice in the past month, the CEO buying stock, and TRIT saying it will buyback millions of shares, it's time to take their words as truth.
- This week's crypto bloodbath - or overdue correction - has tanked TRIT unfairly. TRIT's trade finance business runs on Ethereum 2.0 but payments are made in fiat currencies, so there is no exposure beyond perception of uninformed traders based on words of inexperienced shorts. It's time to make the bet again on TRIT on a short-term trade to double-digits. If/when the audit passes the smell test and guidance is affirmed for $1 EPS power in 2022, this stock can see $30+ in a year or less, in our view. With $190MM in cash and a debt free profitable high growth business, this alternative finance company has the runway it needs to achieve that potential. Upgrading TRIT to TRADING BUY and establishing a near-term price target of $12 with an upward bias pending FY21 audited numbers.
Analyst's Disclosure: I am/we are long TRIT.
Though we want to see audited numbers as a major catalyst for significant share price appreciation, the Company is likely to launch additional online modules to enhance its online platform to further disrupt paper-based international trade finance markets. M&A may also provide a wildcard near-term catalyst for the stock.
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