Ouster: Deep Value, But Hesitant To Load Up
Update - Apr. 10
Ouster announced a reverse split effective April 21. The announcement is not a surprise with the stock trading below $1 again and traders pressuring for the move.
- Ouster (NYSE:OUST) board of directors has approved a 1-for-10 reverse stock split, par value $0.001 per share.
- It is expected to become effective on Thursday, April 20, 2023 and trade on NYSE on April 21, 2023 under the existing symbol "OUST".
Original article posted on Mar. 30
- Ouster reported Q4'22 results, but the company provides limited details on the Velodyne Lidar business.
- The Lidar company closed the merger on February 10 with confirmed guidance for combined Q4'22 revenues of at least $23 million.
- Ouster guided to Q1'23 revenues of only $16 million without providing a complete picture of Velodyne Lidar revenues.
- OUST stock trades below 4x the '22 bookings of Ouster alone, yet the lack of combined pro forma financials leaves a lot of unanswered questions.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
As with any stock, the first quarterly report after a change in a corporate structure can be very volatile. This was the case with Ouster (NYSE:OUST) after finally reporting December quarter results following the merger with Velodyne Lidar. My investment thesis remains ultra Bullish on OUST stock, but the company did a poor job laying out the combined view of the business causing Ouster to dip to new lows.
Read the full article at Seeking Alpha.
Disclosure: Long OUST. Please review the disclaimer page for more details.