Yahoo Finance Should You Hold Vaso Corporation (VASO)?
SRK Capital, an investment management firm, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the SRK Fund appreciated 17.15% while the S&P 500 and the Russell 2000 appreciated 26.29% and 16.93%, respectively. The fund increased 869.94% compared to 98.88% and 41.75% for the indexes respectively. The Fund underperformed the S&P 500 for the first time in 2023. In addition, please check the fund’s top five holdings to know its best picks in 2023.
SRK Capital featured stocks such as Vaso Corporation (OTC:VASO) in the fourth quarter 2023 investor letter. Headquartered in Plainview, New York, Vaso Corporation (OTC:VASO) operates in the healthcare equipment and information technology industry. On February 20, 2024, Vaso Corporation (OTC:VASO) stock closed at $0.3098 per share. One-month return of Vaso Corporation (OTC:VASO) was 9.86%, and its shares gained 9.86% of their value over the last 52 weeks. Vaso Corporation (OTC:VASO) has a market capitalization of $54.314 million.
SRK Capital stated the following regarding Vaso Corporation (OTC:VASO) in its fourth quarter 2023 investor letter:
"Vaso Corporation (OTC:VASO) reported relatively disappointing earnings for Q3 as revenue decreased 2% year-over-year and net income was impacted as operating expenses increased due to investment in new programs and the impact of inflation on wages. In December, Vaso announced that the company is uplisting from the OTCQX market to the Nasdaq Stock Market via merger with a SPAC. The transaction is expected to be completed by the end of this quarter and values Vaso at a pro forma equity value of approximately $176 million. From the S-4 that was filed by Achari Ventures (AVHI) the pro forma equity value of $176 million is equal to a current value of $0.93/share for VASO. This is a significant discount to the current trading price of $0.28/share. This significant discount exists for several reasons, but mostly because $176M is an arbitrary number that doesn’t hold much meaning, it will be up to the market to determine the fair value for the Nasdaq listed VASO. This is a rather odd transaction as SPACs don’t typically merge with already publicly traded companies, but I believe a Nasdaq listed Vaso with improved investor relations and governance is worth a premium to its current status. We will receive new shares of the Nasdaq listed Vaso that I believe will initially trade somewhere around $9.31 and will have to decline by approximately 70% for us to lose money from today’s market value of VASO. Also, due to a put option provision that the SPAC founders have, Vaso is incentivized to keep the newly traded stock above $8/share for six months following the initial twelve months from the closing of the transaction or they will be required to repurchase shares from the SPAC founders."
A healthcare professional wearing a health communications device discussing patient data with a colleague.
Vaso Corporation (OTC:VASO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
