Elliot needs to clean up his Act

        Here Elliott refers to Elliott Noss,the CEO of Tucows. As most people know Tucows ia a Canadian technology company that I have spent a lot of time on.And it has just reported it's  fourth quarter and annual results.The annual results were quite good as Elliott has done a good job here but the report itself is quite amateurish.Tucows is now a billion dollar company and an annual report that says earnings come from domaine names and Ting a small mobile telco is ludicrous.This could actually hurt the stock price if investors

  were not able to see that the company is a bonafied software company that is actually doing  very well.It is true that   2019 e.p.s came down from e.p.s of 2018 but it's results are ahead of almost all Canadian technology companies.It seems to be very well managed.For example, it's adjusted EBITDA exceeds both Kinaxis and Shopify.

          The Quarterly Report
            This quarterly report also has annual results but all the Tucows' quarterly reports have little useful information in them.And they talk about making revenues and profits from domaine names and a small mobile company called Ting.They apparently made a small acquisition in another company that sells domaine names called Enom.If this was true then they would likely be as profitable as Go Daddy and have the same market capitalization.The quarterly reports cover the real software business that has been so successful.
     However the figures in the report as well as it's performance is quite impressive.Elliott must work hard to earn his impressive salary.Yet most of the Q3 figures are down from the third quarter of 2017 except for adjusted EBITDA.Revenues are down 6%,net income is down 60% and cash flow is down 24%.This is not a good trend and means that some of that abundant cash flow should be spent on new initiatives.That aside, the annual figures show better.
         Conclusion 
      My last blog on Workathon on Tucows dated (20/02/2017) stated that although Tucows was performing well it did need to show that it was more sophisticated than selling domaine names.The quarterly reports cover up the real business;it manages  a number of software companies and makes revenues from online advertising(as with Yellow Pages).It is the belief of this blog that it's P/E ratio and the stock price would come down if this was not true.Furthermore mentioning Ting as a major activity is also not conducive to a high P/E ratio.So in conclusion, their earnings are good but their description of activities performed must be improved or Elliott must go.This is good for the long term valuation of Tucows.This blog feels that this should be mentioned at the next A.G.M.(Annual General Meeting) and be the basis of a challenge against  Elliott as chairman.        
                                    https://www.fidelity.com/