Swiss Water Decaffeinated Coffee Inc SWSSF

QTR result out on SEDAR

[winnerswing]

Not perfect but looks good with some improvement.

Let us see how market will react to this.

[winnerswing]

What would you chose between making record revenues or piling up your inventories at much lower coffee prices?

[mjh9413]

Price increase was a fear but seems they 'stabilised' after March. And I am not sure if SWP buys coffee for treatment and delivery. Can you tell me how it works?

[winnerswing]

QTR results released today. Let's watch how markets will react tomorrow and in the near future.

[lscfa]

Co. can't grow much more. It's producing product at 3 lines now but has to give 2 up in a year's time when 2nd line at Delta is completed.

[LukeInvestor]

The new line they are building with have higher capacity than the old lines. Meaning they will actually grow more even when they give the old lines up. 

[mjh9413]

Even without significant growth from here where can you find a stock price at less than 1 1/2 times FTM  EBDTA...THAT IS AFTER TAKING OUT FINANCE COSTS FROM EBITDA. Needs investor awareness for one thing but management is clearly watching all aspects of business in this paticularly worrying period. Please, no more shutdowns.

[lscfa]

With a ton of debt enterprise value/ ebitda is the relevant metric. EV/ebitda is 5x-6x.  

[mjh9413]

Debt to equity ratio appears reasonable to me given main component of debt is the construction loan and none of the loan terms (except possibly the debentures) might be deemed onerous. Macro-economic factors are and will remain the major risk to continuing improvements in rev and profit performance but the price/demand for decaf coffee seems fairly elastic thanks to age demographics and health

[LukeInvestor]

In addition, management has stated that they will have 2 million in additional EBITDA when they move to one location next year. Those cost savings alone are enough to pay off half the debt over the 25 year term.