OTCPK:INPCF - Post by User
Post by
epzon Jun 01, 2018 11:36am
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Post# 28111491
Stock price and buy backs
Stock price and buy backsI think doing buybacks is hard because they are not allowed to bid up the stock (although with its recent cliff like drop this should have been a lot easier). That makes me think that they are preserving capital for mortgage streams. I believe they said their target is 80% leverage so if they wanted to do 100 million in mortgage streams they'd need 20 million cash and likely more as the bank would initially want less leverage while it is proven up. With capital streams virtually in disapearance mode (honestly a lot of the growth in these streams was from re-upping current clients and adding to the farmers debt [although the court ruling says it's not debt]), I think that capital streams for 2018 will only be in the <10 million range so their canola reserves will go down.
With the mortgage stream is it going to be counted as canola reserves. From the latest financial report it looked like it wasn't going to be.
As for these people spewing bankruptcy worst case is Input loses a little money in legal fees. These cry baby farmers would have had the same story if it was TD bank lending them the money and probably did. Terry Gustofson couldn't pay his debt to the bank and Input bailed him out but he still felt sorry for himself.
From the farmers I know most are resilient SOB, they complain about the weather a lot but they don't back down from deals they make. I feel like our money is more than safe. Input is a massively good buy at these levels. Div yield is almost 4% so starting to make sense to open a heloc. At a minimium this is worth 130 million market cap and that's only because they've really struggled to grow. If they finally get some growth y/y then we're in for some fun.