Mathgrün

$GAIN sold a decent chunk of my options for 65-75% gains. As I said, the options were severely mispriced. Ultimately, I want to be prudent with profits given that if I am right and the recapitalization actually happens, the NAV might drop drastically, which might present another opportunity to enter later. Congrats to anyone else who was riding this with us.

$MSGM delivered a brilliant quarter across all metrics imo. The valuation disconnect is baffling. The company has roughly 5.1 million shares o/s and a market cap of around $23 million. With a $6 million cash position (as of February 2026), the enterprise value is just $17 million. EBITDA for the year was $7.3 million, putting the stock at 2.4x EV/EBITDA. They carry zero debt, maintains a clean balance sheet, and generated consistent positive operating cash flow (~$300K/month in 2025). Deferred revenue grew sequentially from $1.11 million to $1.13 million. Since the v1.2 DLC was fully delivered in Q4, that revenue should have been recognized in Q4, implying the remaining balance is almost entirely driven by RaceControl subscriptions. Management confirmed ~26,000 subscribers generating $200,000 in monthly recurring revenue (MRR) at year-end implying an ARPU of ~$7.50/month, heavily suggesting widespread adoption of the sticky $84 annual package. Management also noted that January and February 2026 saw the largest subscription revenue jumps yet. The company appears on track to hit a $3 million ARR run rate for RaceControl sooner than I expected, potentially as early as March. I was expecting to happen in June driven by the Le Mans 24 hour race. This segment along with the licensing segment has over 90%+ margins and significantly enhances the profitability profile. Q1 is shaping up to be even stronger, with a $1M+ per quarter high-margin baseline from RaceControl and licensing, plus immediate top-line contribution from the new DLC pack launched on March 23rd. The core business is scaling rapidly, yet the stock is priced as if bankruptcy is imminent. The ongoing selling overhang from Mike Zoi remains the primary artificial drag on the share price imo. Once that clears, the strong fundamentals should drive a dramatic rerating. I don’t see another reason for the current valuation. The presence of the Sidoti analyst on today’s call (first time in a long while) suggests institutional interest is building, and we may see coverage initiations soon. The turnaround appears complete and hopefully aggressive growth should follow from here.