RE:New research from CormarkI've read most of the report. It's quite substantial at 23 pages long. It goes on and on about this and that metric in support of the $9.15 target price. Makes a good-sounding case.
One thing I'll say about this. I don't think Cormark would have produced such a substantial thing unless they were pretty much assured that there's going to be a financing before too long. And this would fit with the fact that Supremex has spent over C$50 million on these two recent acquisitions.
I suggested all this to my Bay Street friend (who got the report for me) and his immediate reaction was something like . . . "well, I'd better short the stock because an imminent share offering will be done at a discount."
I suggested to my friend that he should think twice before rushing to do that. No doubt Supremex probably is looking to raise some cash but their current cash flow is so huge that I doubt there's any need to move forward in a panic. My guess is it will be AFTER a barn-burner Q4 is reported.
And there is the matter of the $9.15 target price. So I could see Supremex selling shares at $8 or $8.50. But $6? I'd say there's no need to do that when things are looking so interesting. And when the balance sheet is not really looking all that stretched.
I see there was some aggressive buying of the stock in the last hour or so today. My guess is that some institutional investor finished the Cormark report mid-day today and they wanted to grab some shares BEFORE the weekend. Other professionals will get around to that report over the weekend.
Could there be a bit of a Bay Street feeding frenzy next week? I wouldn't rule it out.