For any equity analysts out there. I’m currently looking at a micro-cap stock that went public in December. I’m hesitant because I noticed an 80%+ decline in their backlog after they raised all their new capital. In most cases, I know a declining backlog is a red flag, but does anyone know if this is normal for a company that just went public? After all, if they raised all that new cash maybe they’ve had an easier time fulfilling orders.
I’m somewhat new at this and trying to teach myself equity research, so bare with me.