Post by
malx1 on Feb 08, 2024 3:02pm
Q3 price action - heavy selling
With an hour to go, almost $5mm worth of shares have sold today, pushing the price into $8's.......
Looks like an overreaction to a Q3 that showed material revenue growth combined with serious erosion of CMG's profit margins.
Free cash flow flat year-over-year.
I think the reaction here is overdone.
After reading the MD&A, I had figured we would see some upgrades from analysts, maybe we still will.
Once acquisitions are digested, this company could generate $0.50-0.60/yr free cash flow.
$15-18 share price at 25-30x FcF.
Guessing that the erosion of operating margins is scaring some people out of their shares.
Gotta give these guys time to find efficiencies, digest acquisitions, cross-sell to customers, build up the business. Doesn't happen in 3 months.
I figured the stock would be +$1.00 today, instead we are almost -$1.00.
Either I'm an idiot or the market has become skittish about this growth story.
Time will tell.
Comment by
malx1 on Feb 09, 2024 6:29pm
Canaccord guys seem to agree. Target price INCREASED to $11 from 10.50 Target Raised by Canaccord Genuity Buy CAD 10.5 » CAD 11 02/09/2024 Will be interesting to see what the other firms have to say........................................................
Comment by
malx1 on Feb 15, 2024 5:12pm
Share price now $9.50 Did everyone panic sell in the $8's? This is tech, dummies, not a shale service co