GREY:ENTCF - Post by User
Comment by
jimmyjeblonskion Jun 07, 2013 7:44pm
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Post# 21499678
RE: RE: Acquisition
RE: RE: Acquisition I bounced it off Peter Hodson, he thought they would have to finance again:
Question: What do you think of entrec (ENT) in light of the recent large acquisition. Thanks.
5i Research Answer: We like Entrec: it is a cheap, well-run company.
This deal looks very good. It adds to earnings, diversifies the business, and is immediately accretive to earnings. It is quite a large deal for the company, however, and thus adds some risks if it does not work out. But we have no reason to believe it will not work. With this deal, we would expect the company to raise money later this year, but as it grows investors should stay interested.