Thanks for the article. Now that $TTEC has dropped another 10% - have you changed your view? I am looking at peer $IBEX which trades almost 2x turns lower, appears to be more AI focused with net cash and returning to organic growth last quarter. They just bought back 20% of shares to take out their controlling shareholder so now its non-controlled for first time since going public.
Agree with your assessment on Curbline which is already valued at a 5.5% cap.
I was tempted to buy some TTEC a couple of weeks ago when it was closer to $4 since that is where it was trading before the take private announcement. I would only buy TTEC as a special situation, the business doesn’t look great at the moment. I’ll have to check out IBEX since that sounds like the better business
Right these businesses seems to have lots of competition and high DSOs is a drag on working capital. Although market seems to really overblow the AI impact.
It looks like IBEX is experiencing the same IT spend pullback, macro headwinds, and AI delays that impacted its peers like TTEC, and it's now experiencing the same slight inflection point and better growth forecasts that others like CNXC and TEP has seen. I'm assuming TTEC follows the same trend. There don't seem to be any major relative AI winners or losers in the BPO / CX space yet...
(edit) also, I meant to say that TTEC trades on a higher EV/EBITDA basis mainly because of its leverage and depressed earnings over the past year. I think that should flip.
Thanks for the article. Now that $TTEC has dropped another 10% - have you changed your view? I am looking at peer $IBEX which trades almost 2x turns lower, appears to be more AI focused with net cash and returning to organic growth last quarter. They just bought back 20% of shares to take out their controlling shareholder so now its non-controlled for first time since going public.
Agree with your assessment on Curbline which is already valued at a 5.5% cap.
I was tempted to buy some TTEC a couple of weeks ago when it was closer to $4 since that is where it was trading before the take private announcement. I would only buy TTEC as a special situation, the business doesn’t look great at the moment. I’ll have to check out IBEX since that sounds like the better business
Right these businesses seems to have lots of competition and high DSOs is a drag on working capital. Although market seems to really overblow the AI impact.
It looks like IBEX is experiencing the same IT spend pullback, macro headwinds, and AI delays that impacted its peers like TTEC, and it's now experiencing the same slight inflection point and better growth forecasts that others like CNXC and TEP has seen. I'm assuming TTEC follows the same trend. There don't seem to be any major relative AI winners or losers in the BPO / CX space yet...
(edit) also, I meant to say that TTEC trades on a higher EV/EBITDA basis mainly because of its leverage and depressed earnings over the past year. I think that should flip.
I assume we hear from the TTEC special committee within the next few weeks?