RE:RE:RE:RE:RE:Estimates for Q4?
colourama wrote: Stockrock86, I agree on all your points. The stock just doesn't seem to be able to get any support whatsoever. We are actually trading below book value now, so investors seem to think the company is unable to pay down its debt? Who knows what others are thinking, but they are probably taking large losses to try and invest somewhere else.
Regarding the debt situation I'm not at all worried. Off the top of my head it's $21m in debt in $9m in cash and I think I have interest rate at 5.8% (going from memory)
At $21m in debt, interest expense is $1.21m and yes this will increase as the bank of Canada keeps raising rates which will impact the prime rates offered.
With $9m in cash, they can pay off the interest expense very comfortably. If we use a reasonable $1.6m*4 = $6.4m in ebitda over a full year and interest expense at ~ $1.2m, there is enough cash left over to service the debt even if they didn't have the $9m cash balance.
This probably gets to at least a 2 times book value when all of this fear subsides for an easy double.