market folly

Next up in our notes from Invest For Kids Chicago 2013 is Steve White of Castle Union.  He was part of the emerging manager panel and pitched Avid Technology (AVID).


Steve White's Presentation at Invest For Kids Chicago

•    “Real companies not current on their financials”
•    Avid Technology (AVID): audio & video editing software
•    Industry standard with customer stickiness
•    HD shift was super strong
•    Revenue gone down for 5 years
•    No financials filed since Q3 2012
•    February 2013 was fired
•    Restatement process should be doing in Q1
•    Ultra HD aka 4K
•    Competitor of adobe and autodesk with mid 20% margins
•    Second worst margins are 17%
•    Stock is $6.60 with comps at multiples above $20
•    Application software companies are bought as 8x (low of 5x) maintenance
•    Risk is restatement of financials
•    Nearly 20% of market cap is cash
•    Getting compensated properly to take risk 


Check out the rest of the hedge fund presentations from Invest For Kids Chicago here.