Outlook We know a good deal about what ahc is up to based on the following from the latest md&a:
"Management is focused upon augmenting production capabilities and distribution channels.
The significant effort invested in negotiating sustainable supply agreements within the environment of challenging chemical and packaging and freight industry constraints is ongoing.
The Company continues to examine business expansion alternatives to enhance shareholder value."
A major point for me when i was deciding how many chips to invest in it was how concise their reports are. No hype, let the numbers speak for themselves. And when no numbers are given, such as in the outlook, use precise words that show actions, strategic guidance and tactical executuon steps. The three paras have all.
Another one was the sheer scale of the turnaround achieved so far.
Last but not least, I own a part of this biz lead by by bros who own half of it and who accepted $10/share once when they sold their control to eggheads from bay street. The likelihood of them making the same mistake twice is low.
A big q, as in any inv thesis, remains: dividend outlook? I have no doubt they will start distributing some soon, but what remains to be seen over the years is how and where they strike the balance between the opportunity cost of biz growth and production expansion within a steady ship of optimal supply sourcing. And hopefully learn along the way how to keep the price of the stock not too low but also not too high.