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What are you buying today?


LowIQinvestor

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2 hours ago, lnofeisone said:

Welcome to the party...I added another slug of Dec 17.5 and 30 calls.


O&G always makes me nervous, I prefer simple straight forward stuff like TPL. But the setup here looks pretty compelling. Plus it seems to be a theme of mine to jump in small risky positions as of late. I’m looking out 1-2 years with this so I guess we’ll find out! 

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On 4/22/2022 at 6:04 PM, MikeL said:

Aren't you worry about the share dilution of CTS.TO?

2018: 64m

2019: 77m

2020: 102m

2021: 200m

I think the share issuances from the last 3 years are due to them wanting to bulk up quickly to a critical mass.

 

Going forward, the company guided to $1B of revenue in acquisitions per year for the next 3 yrs.  Their stated goal is to acquire 3% ebitda margin business at 5x EV/EBITDA multiple, that's a P/S=0.15 and hence $150M M&A dollars per year.  Based on their cash on hand ($120M real-time by my estimate) and FCF (C$130M for 2022 by my estimate), company should be able to self fund without further dilution.

 

 

 

CTS.png

Edited by gokou3
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1 minute ago, thowed said:

 

Nice.  I was a bit surprised at how much it went down today.  But hey ho.

Yup. I was and I wasn't. It looked for a minute like the big sellers had been alleviated when we got back over $12. You could see the stock trading normal again. Friday too had a bid all day near $12. Today there was as much stock as one wanted at the ask all day long. From talking to a few folks its really just exhaustion from Harding's paint dry strategy right now. Its a little concerning to me that with all the stuff happening over the next two years, they dont have the confidence to at least even authorize a buyback. But whatever. Ive got all day so it works for me. 

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