STRR

STRR is not one business but a just-assembled four-segment holding company. The MD&A confirms that on August 22, 2025 legacy Hudson Global (HSON) reverse-merged with Star Operating Companies, converting SOC shares at 0.23x and only relisting as STRR on September 5, 2025. So FY2025's $172M revenue (+22.9%) and $113M total assets (+115.3%) are not organic growth — they are the bolt-on of Building Solutions (modular buildings/wall panels), Energy Services (ADT drilling tools) and Investments onto a shrinking RPO staffing base. That makes the trend line meaningless: the revenue history (201→161→140→172) is choppy and the two most recent years are the only losses in the set, with net income deteriorating from -$4.77M to -$5.92M and diluted EPS of -$1.85. You cannot underwrite a forward number here.

The quality picture is poor beneath the optical cheapness. A 46.4% gross margin does not translate down: operating margin is -2.1%, net margin -3.4%, ROE -9.0%, and — most important — operating cash flow swung to -$7.25M against just $10.3M of cash (itself down 39.6% YoY). The company is burning cash while simultaneously spending $2.64M on buybacks, which is questionable capital allocation for a $40.7M-cap entity with $8.47M of current debt due. The MD&A also flags a 10% Series A Cumulative Perpetual Preferred (STRRP) plus sale-leasebacks of multiple Maine/Wisconsin/Minnesota facilities in 2024 — the preferred is a standing cash claim ahead of common, and the leasebacks show the balance sheet was being monetized for liquidity before the merger.