TSX:MDF - Post Discussion
Post by
retiredcf on Oct 03, 2021 5:31pm
Assessment
MDF has been through years of slowing growth although the latest several quarters have shown solid growth numbers, and the next few years are projected to grow pretty significantly. We believe most of the investors' concerns or reservations are around the company's profitability. The company has not been profitable since 2018 and it is just slightly generating positive free cash flow. MDF recently acquired Periscope, which is a large company, given the size of MDF itself. It has a low debt balance and is highly liquid, but it is not expected to be profitable for at least another couple of years. If the integration with Periscope goes well, it could provide more consistent revenues for the company and bring in higher levels of profitability, which would likely reverse the momentum of the stock. The stock was highly promoted by some hedge fund managers early this year and this caused the stock to run. It looks better today at less than half its level of February.
So said the team at 5iResearch. GLTA
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