GREY:GLNIF - Post by User
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PRObonoon Sep 16, 2013 10:48pm
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Post# 21744577
GLN 'NEEDLE IN A HAYSTACK'...up 7.5% today!
GLN 'NEEDLE IN A HAYSTACK'...up 7.5% today! Canadian value investor and old friend of Wyatt Investment Research Guy Gottfried is the first speaker on Day One of the Value Investing Congress . Gottfried has run Rational Investment Group for five years, and has been a Value Investing Congress regular. His picks at the conference have averaged an incredible 60% return.
His latest picks are centered around one key theme: finding small-cap bargains at a time when most large-cap stocks are up. "Finding needles in a haystack," he calls it.
His first pick? GLENTEL Inc. (TSX: GLN) -- $331 million market cap
Glentel is a Canadian-based retailer of wireless products and services that is the largest multi-carrier retailer in Canada and Australia, and the second-largest Verizon retailer in the U.S. Most of its profits come from wireless carrier payments, not subscriptions.
Here are some other notes about GLENTEL:
- It trades on the Toronto stock exchange at $14.75 to start the day
- Its market cap is $331 million
- It's VERY cheap - GLENTEL trades at just 7.5 times free cash flow
- It pays a generous dividend - a 3.4% yield. Better yet, that dividend is growing at 20% a year since 2007.
- A recent acquisition of rival Wireless Zone , in December 2012, is only now starting to contribute to the company's bottom line.
- Other recent acquisitions include AMT (Australian Operation)- a solidly profitable wireless carrier.
- Operates wireless kiosks in Costco's Canadian stores. Just established similar deals with Canadian Targets and BJ's .
- AMT is entering countries in Southeast Asia, which should contribute to future growth.
- Even without future growth, GLENTEL has enough cash on hand and ongoing free cash flow for debt repayment to help boost the stock price on their own.
Read more: https://www.nasdaq.com/article/guy-gottfried-needles-in-a-haystack-cm276879#ixzz2f78a5k61
PRObono