RE:Re ACB up 15%
-EBITDA loss $60M on $75M sales. They need to double the sales to generate a positive cashflow from the operations.They have about 300M in liquidity so more or less 9 months at this pace before they need to raise additionnal financing.
- ACB current trading value --> 110M shares X 10.42 = 1.1B
- ACB is reporting a book value of 3.9B which accounts for 3B in goodwill and intangible assets. Definition of Goodwill : "The established reputation of a business regarded as a quantifiable asset, e.g., as represented by the excess of the price paid at a takeover for a company over its fair market value"
In other words, ACB is currently trading $200M higher than the book value EXCLUDING the goodwill & IA.
The question you need to ask yourself is how much does this GW & IA worth? To be more specific, within all those acquisitions made by ACB, do you value a high potential of ROI in the very near future. If you don't see any value, your SP buy/sell should be @$8.20 CAD which means if it's trading above that, you should sell or not buy., If you value this @ $500M, then you should take a position if it's below $12.72 CAD or sell if it's higher.If it's $1B, $17.27 CAD and so on.