GREY:CCZFF - Post by User
Post by
Barbazanon Mar 25, 2010 9:37am
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Post# 16922416
Laurentian piece
Laurentian pieceGot my hands on this report yesterday.
They have a speculative buy on CCZ with a $1.30 target... interesting piece - they call it 'controlled expansion'... with EPS of .09 for 2010 and .13 for 2011 - not as great as once forecast but I think these are conservative estimates.
When you look at the earnings over the last 4 years - we are in a clear uptrend and to only step back .01 in 2009 from .08 in 2008 to .07 last year is impressive when you consider the environment...
Other highlights from this research piece - Revenues of close to 50 million projected for 2010, inside ownership still at 36%, re-occuring contracts make up 65% of revenues, debt of 12.6 million financed under 4% and 'highly manageable', trading at discount to its peers...
Let's face it - CCZ has had challenges - low nat gas prices with higher production costs, Alberta govt biz sliding a little... and they've done great to diversify and make themsleves a national player - in both the US and Canada - they actually increased the govt segment by 5% YoY through the acquisitions ... and the energy segment generates higher margins anyways...
When I spoke to Mamdani yesterday (he was in Montreal on business ?!), he sounds pretty excited about the prospects for growth, new contracts, more acquisitions... Trader, you're right, he's an approachable well spoken guy who instills confidence - mind you Atkinson was the same way at VV - grain of salt required as it's their bloody job... Website looks great, more analyst coverage etc. but these guys could still use a kick in the a** when it comes to the IR department...
To me, this dip is a great opportunity to add - back down to 6x 2010 earnings... wonder if we'll test .51 - old resistance levels - we are a completely different company than 3-5 years ago - I would be surprised if we fell that far... best of luck all...