Vitreous Glass Inc V.VCI

Alternate Symbol(s): VCIGF

Building Materials Building Materials

Vitreous Glass Inc. is a Canada-based company, which is engaged in recycling glass. The principal business of the Company is cleaning, crushing and selling waste glass to the fiberglass manufacturing industry in the province of Alberta. The Company creates GlasSand cullet for use in fiberglass insulation manufacturing.

TSXV:VCI - Post by User

Vitreous Glass Inc

<< Previous

Bullboard Posts

Next >>

(0)
•••

Post by EverydayCapon Sep 29, 2022 12:07pm

244 Views

Post# 34995070

Wake up!

With rates soaring, the housing market is freezing up. Taking the marginal buyer out of the market will significantly slow new construction, even in Alberta. Look at commentary from Melcor (MRD) etc. to get a sense of how rough it could get.
VCI has the obligation to buy all glass from AB depots. How much they sell, and at what price, is the risk in this environment.
Assume FCF goes from the 38c/share range to 30c/share, which is not unreasonable.
Now move the FCF yield from the 8% norm with rock-bottom rates (.38 / 0.08 = the near $5 share price that holders have become accustomed to) up to 10% at 30c/share of FCF and the shares could easily drift to $3.
What happens if the FCF goes lower and the FCF yield goes higher?

<< Previous

Bullboard Posts

Next >>

The Market Herald’s Weekly Cannabis Report – Dec. 8, 2023