Q: This company seems to be financially stable and I am wondering what your thoughts are regarding a speculative purchase. I note that Sime Armoyan has a big chunk of this also.
Thanks!
Thanks!
5i Research Answer:
The small size of the company ($73M) makes it tough to attract investors, and shares are down 17% this year. Sime A owns 20.45% of the company and the Alberta Investment Management Corp owns 50%. R. Mathison owns 12.2%. So about 83% of shares are 'locked up', making trading very thin and some days it doesn't trade at all. This really lowers our interest right off the bat. It has lost money since 2015, and debt is 2X cash flow. It is forecast (2 analysts) to make a tiny profit next year (1c per share). But based on the above, we would have no interest here.