After being initially aggravated by the raise, I decided to substantially increase my position today... https://twitter.com/shortavocado/status/1311418671575846912

Unlike the Sammons, who starved the business of capital and didn't pay ANY attention to the stock price, Savneet is opportunistically raising a war chest for investments and M&A. It's better to raise the money now when they know the stock is high then announce a raise...

commensurate with an acquisition when the stock could potentially be lower. To that end, I think it's likely that PAR announces a deal soon. At the Sidoti conference, Savneet was very specific about what kind of deals they were targeting, stating that whatever they acquire...

will be "exactly like Restaurant Magic." A bolt-on that's an easy sale to customers. It will probably be something on this graphic. My guess...loyalty or analytics. Whoever it is, they're probably on this list... https://www.partech.com/integration-partners/

Aside from M&A, PAR has many initiatives that should yield enormous returns over time (and require cash in the interim). There are substantial investments occurring within the core Brink product to improve the user experience, including the transition to a microservices platform.

Brink's table service offering has been sidelined temporarily but it's still on the menu (pardon the pun). The move to table service basically doubles Brink's unit TAM. But what gets me most excited is PAR Merchant Services and PAR Capital (PAR's answer to Square Capital).

Merchant services is live TODAY, accepting payments and generating incremental revenue for PAR in approximately 100 units (my estimate). While an immaterial number now, credit processing revenue can more than triple Brink's ARPU.

Table service + payments is even more appetizing (sorry), with ARPUs exceeding $12k vs. a $2k base. Importantly, PAR has not stopped investing in people to support its product investments and has had 140+ net hires YTD, which is particularly impressive, considering

that we're in an environment where many restaurant technology platforms have laid off hordes of their staff and retrenched on strategic initiatives.

Putting it all together, PAR has substantial opportunity for reinvestment at high rates of return and is using the raise to invest and widen its competitive moat. Five years out, this will be a footnote in PAR's history. A tool to feed a massive, high-quality growth engine.

Forgot this... $PAR