1. Rimini Street, Inc. (NASDAQ:RMNI)
Voss Capital’s Stake Value: $27,696,000
Percentage of Voss Capital’s 13F Portfolio: 11.37%
Number of Hedge Fund Holders: 16
Rimini Street, Inc. (NASDAQ:RMNI) is a Nevada-based company specializing in enterprise-level Oracle and SAP software products, services, and technical support for multiple industries. Rimini Street, Inc. (NASDAQ:RMNI) sells its solutions via direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia Pacific.
Travis Cocke owns 2.87 million shares of Rimini Street, Inc. (NASDAQ:RMNI) as of Q3 2021, worth $27.6 million, representing 11.37% of his total third quarter investments. Rimini Street, Inc. (NASDAQ:RMNI) is the biggest holding in Voss Capital’s Q3 portfolio.
On January 19, Roth Capital analyst Richard Baldry upgraded Rimini Street, Inc. (NASDAQ:RMNI) to Buy from Neutral with an $8 price target, suggesting an upside of 53%.
According to Insider Monkey’s Q3 database, 16 hedge funds were long Rimini Street, Inc. (NASDAQ:RMNI), with stakes totaling $289.6 million. Adams Street Partners is the biggest stakeholder of Rimini Street, Inc. (NASDAQ:RMNI) as of Q3 2021, with 23.5 million shares worth $227.40 million.
Here is what Greystone Capital Management has to say about Rimini Street, Inc. (NASDAQ:RMNI) in their Q1 2021 investor letter:
“During the quarter I significantly added to client holdings in Rimini Street which has now become a top four position due to both additional purchases and share price appreciation from our initial cost basis. The reasoning behind the purchases, especially at prices 70-100% above where we initially started buying include information gleaned from management during the company’s February investor day event, as well as what I believe to be the business hitting an operational inflection point. I wrote about Rimini Street in the Q3 2020 letter, but things have progressed quickly in a positive way and there have now emerged what I believe to be multiple paths to achieve a very favorable return moving forward with a strong risk/reward profile.
With a clear valuation disconnect in place from an EV/ARR or EV/Gross Profit basis, Rimini Street is currently one of the cheapest profitable SaaS related stocks among a universe of inferior software companies. While I can point to some clear reasons for the undervaluation (which I believe will be transitory), the valuation discrepancy compared to lower quality businesses trading at high multiples of revenue does not make sense to me. Furthermore, as discussed below, I believe the company is taking the necessary steps to clean up the story which will have the effect of shining a light on the strength of the business and competitive position. (Click to read the full text)
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