EVOL - Evolving Systems: Improved Business Momentum Questionable $100M Shelf Tanks Stock Price

• Business momentum and investor sentiment was improving on Evolving Systems, highlighted by a 600%+ stock price increase from the lows of 2020 to early-2021.
• A $100M shelf registration, plus insider selling were likely contributing factors to a stock price decline of 40%+ from the highs in March 2021.
• Based on rules for Form S-3, the potential dilution is currently about 16% per year. Note that an offering, if any, could end up being for less than that.
• A company selling additional stock is not unusual, but this is the latest example of poor communication that has contributed to underperformance in the stock price.
• While there could be a sound investment case to be made for Evolving Systems, I have doubts about management. Shareholders may want to proceed with caution.

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