Post by
Ernieandbert on Nov 12, 2022 1:55pm
Insider Buying Etc
Anyone notice the past week's Sedi filings that CEO bought 50,000 @ .45 (owns 288,578), CFO bought 23,000 @ .44 (owns 91,200) and Honig bought 50,000 @.45 (owns 115,515). Not a lot but it is supportive when Insiders are buying stock.
The Coblat stream was transformative and the market has not recognized it yet. Wait till they monetize the cobalt, buy back the debt and liquidate working capital, all with (hopefully) a nickel tailwind. Stock is not going to sit here at .50, or $1, or even $2. The entire EV will be in the stock. A 1x EV/Ebitda multiple will soon become 4-5x. At 400mm share o/s, and no debt, that would put the stock at $3-4 area.
We will see if they can execute that, along with further deleveraging through the tenders but so far, Leo has been able to accomplish more in one year than Pathe did the past decade.
And if anyone wants to know why they need to take out the debt, it is because both bonds have "restricted payments" covenants in them which does not allow the co to pay dividends or buy back stock. That is the urgency to buy them back because once they do that, they can buy back stock at 1x 2023 Ebitda.
Tender your bonds and buy the stock would be my recommendation.
Comment by
rkhosla on Nov 12, 2022 3:24pm
Thanks for this. They have certain ownership requirements they need to meet and these are assessed at their various board meetings and I think as we have heard they have this board meeting coming up in Q1 where they award themselves units. No one is taking my PIKs from me ; ) Looking forward to the 'exponential linear' (whatever that means) rise in the SP to $4+
Comment by
Oaxacan on Nov 14, 2022 7:03am
https://www.sherritt.com/English/Investor-Relations/News-Releases/News-Release-Details/2022/Sherritt-Amends-and-Extends-Its-Previously-Announced-Offers-on-Receipt-of-Support-From-Significant-Noteholders-to-Tender-30-Million-of-Secured-Notes/default.aspx