RE:RE:New Management to Deliver the Goods This Week…Fair points being made;
With Regards to Debt Service and Repayment;
The 20M adjusted operating cash flow is after debt service which will come down significantly after the JP Morgan restructuring, so they will have plenty of excess cash to pay down the principle on the debt like they did in 2015 and capital leftover for a capital return program.
Total Debt will continue to be reduced while EBITDA can grow leaving 2016 below 4x Net Debt/EBITDA and EV/EBITDA below 6x which I feel is more than reasonable.
With Regards to Being on the Venture;
They shouldn't be on the venture, they should move to the TSX or I don't see why they wouldn't list on the NASDAQ. This alone would reduce a significant portion of the valuation difference between its peers and Venture anxiety can't argue this one but I hope for movement and commentary on this in 2016 driven by the new management team.
The Juicy Dividend
I agree with you on this one, I would of rather they paid down more of the principal on the debt, but the dividend is fully covered out of cash flow. Every additional share they buyback is another dollar they save on dividend payments. You put a more reasonable valuation to get a SP at 0.68 that puts the yield under 7% which doesn't seem as out of whack.
Management Alignment
They cleaned house with management, with large holders I would be more concerned if they weren't pumping their own book. You should only own a stock if you believe in the underlying business and can defend the underlying fundamentals of the business.
That’s all.
Pistol Pete you keep us honest, went through what other stocks you have an opinion on and seems like you have a big vested interest in PTG in 2016. Time will tell which way this one goes but I still say higher.