GREY:CMHIF - Post by User
Comment by
sirbarfaloton Sep 01, 2012 8:15am
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Post# 20288407
RE: RE: RE: RE: RE: RE: I would be surprised...
RE: RE: RE: RE: RE: RE: I would be surprised... CML's Lab asset is a license to print money guaranteed by the taxpayers of Ontario. A money spigot. Historical operating margins are in excess of 30%. CML's approximate annual revenues of 385 million x 66% x 30% = $75+ million per annum. Lenders lick their chops at an opportunity like this, given current global credit conditions. The free cash flow from the Lab asset could further be magnified in a JV or outright purchase by one of CML's competitors since the Ontario Lab market is already substantially consollidated between 3 entities. Margins of 40% would uptick the free cash flow by 33% to $100 million plus.
CML's current share price may actually be at, or even slightly below, the private market value of its assets, debt included.
Only an idiot would 'short' CML's shares.