Post by
lotus1 on Sep 11, 2020 10:43pm
Analyst Coverage
Companies that do not need to tap capital markets, typically do n't attract interest of financial institutions or brokerages, as there are no commissions/income opportunities. Interestingly enough, many such canadian companies have proved to be solid value creators for shareholders, irrespective of much analyst coverage.
Also, companies with low share count which prefer to use their free cash flow for expansion rather than issue equity have traditionally been investors' favourites as there has been no dilution. Constellation Software is one name that comes to my mind where company has never issued new shares after its first initial offering in year 2006 at $16 and shares after 14 years are trading at $1500.
IMO, Richards Packaging has adopted a prudent strategy of having limited outstanding shares and keeping their pay out ratio Low. They have traditionally used their FCF to finance new acquisitions and pay down debt.Company Management is highly committed and known to be financially disciplined.
No wonder, company has a large insider and institutional ownership of 75%.
Lack of analyst coverage has not and will not stop the share price from climbing to new highs. GLTA !!!