Can I please get your opinion of Colabar (GCL). Thank you!
Dave
GCL is still in 'recovery' mode following several years of weakness and the elimination of its dividend (in 2015). The stock is cheap at 11X earnings even after big gains. The balance sheet is still leveraged, with debt at 4X cash flow, but earnings growth looks back on track. With big gains expected in EPS in 2023, growth is still expected to be 20% next year. Sales increased 19% in the 2Q and cash flow showed a big swing to positive from negative in the prior year quarter. There is still plenty of risks here: small cap, debt, economic, and market. But it is doing many things right and is priced well. There has been some insider buying. For the risks noted it is hard to give it a very strong endorsement, but it does look better these days than it has for a while.