My only gripeAxia posted another good quarter. What's to complain about? IMO, not much. Revenue is growing, EBITDA is growing, margins are improving, cash balance is growing, common stock now pays a dividend, growth opportunities in this business look to continue unabated (who wouldn't want high speed internet at a good price?) Overall everything is going great, and I still think this stock is undervalued. My only gripe is that sometimes Axia management could be more forthright in discussing their business. During the CC, the clandestine nature of Art Price (in regards to Covage bids) seems way overdone, especially when there are statements in the MDA that added some color. The MDA states that,
"Covage’s current bid pipeline could represent an increase in the addressable market of approximately 40,000 enterprises and 900,000 homes. If Covage is successful in winning these bids, it would be incremental to the existing business and could result in an increase over Covage’s 2013 revenue and EBITDA of 100% - 200% over the next 5 to 10 years".
When asked about those bids during the CC and the potential new business they could generate, why not just reiterate what is spelled out in the MDA? And I know they mentioned in the January 27 press release that "Axia plans to fund this investment (in Alberta) with $20 million of senior fixed-rate term debt". but would it have killed them to put out a press release on March 7 when they actually entered into the $20m credit agreement? (I love the 4 percent interest rate). I know it's only a matter of a couple days but still it seems pretty relevant to the business and it seems like a positive for the company. Why not blow the horn a little bit? And get rid of the "blog" button on the website if you aren't going to use it. (The last "blog" was July 7, 2011). But besides my minor complaints everything seems to be going well with Axia's business, which is mainly why we invest anyway. So maybe I should just shut up already.