Kerrisdale said the company has two declining internet businesses and a nascent fiber business with high capex requirements and unrealistic profit expectations, adding that these businesses are not worth nearly the $730 million they're being valued at by the market.
"The market is completely misvaluing this mix of low quality businesses," said chief investment officer Sahm Adrangi in a report. "Tucows' ill-fated adventure into fiber will end badly, and the market is ascribing far too much value to this highly speculative division that has destroyed so much capital in the past for far larger peers."
Price: 59.73, Change: +1.38, Percent Change: +2.37
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