This is not FA, I encourage you all to do your own DD.

This thread is designed to bring a brief overview of all the pieces of TRKA together into one thread for newcomers.

Current State:

TRKA has gained 10 weeks straight with our highest close since October Friday. Currently Tons of Short Positions taken out last Friday were not able to be covered without loss by this past Friday and are still outstanding. We are looking at a massive covering in addition to massive interest from retail and likely institutions in a very near term.

What brought the sp down:

Troika acquired the larger and more profitable converge direct. To achieve this a loan was taken out that had not so great operational clauses which led to “events of default” but NOT payment defaults. They also issued Series E which left a potential of a 5x dilution on the table. These two factors together slammed the stock to a 15million market cap at ~.09/share 10 weeks ago.

Why is it going up:

Its been steadily climbing as it had become clear that the company was getting things in order. The converge acquisition led to absurd growth in revenue, ebitda, and the first profitable quarter. This didn’t jump the price with the dilution and debt issues, it just out a light at the end of the tunnel.

The company worked with BT and recently came to a long term waiver of default. Included in this BT released holds on funds that it had control of for collateral. Additionally a long term waiver of default (no longer in default) and many bullish language pieces around sale of company and indications of significantly improved financial standing.
This piece came Thursday the 16th AH it did not jump the price much and the stock was slammed with heavy shorting Friday.

AH on Friday the 17th the company filed two RWs indicating the withdrawal of the offerings related to the Series E. This indicated that the stated intent to buy back the Series E had likely come to fruition with the newly available company funds. This happened AH Friday and trapped the shorts through the long weekend. The price has not come within 10% of that since and is now roughly 40% higher, shorts are massively under.

At a supremely timed PR just as the buying pressure was drying the company put out that it retained Jefferies LLC (yes that one) to help reorganize its capital structure to “maximize shareholder value”. Third PR had a lot of bullish language as well.

Near Term Catalysts:

1:

It is suspected that shorts were borrowing from warrants, which once the RWs go into effect automatically at the end of this week will no longer be possible. With such a small float there will be no where for shorts to get shares to push back and a squeeze is likely.

2:

Series E Buyback PR possibly after RWs are effective, perhaps not until earnings.

3:

Earnings due March 31st, 10k only months since converge acquisition. Expecting significantly improved financials in line with gains from last earnings.

Looking at Valuation Long Term:

Once series E buyback finalizes (SW forms tell us it is happening) and refinance or payoff (of the very small debt) is done we can assume it will rise to a reasonable calculated valuation. We can assume profitable company with effectively no debt and low overhead expenses running 500million in revenue even at a 3x Rev valuation the company would be ~1.5 billion based on last known numbers. That equates to about $22 / share

Looking at a EBITDA based valuation we go with last numbers and minimal expected improvement in EBITDA from finishing restructuring. We can assume Minimum EBITDA of $40 at a 10x valuation you get ~400million or roughly $5.5 per share.

So as you can see $5 a share is actually the low end of reasonable PT for Troika.