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OVIVO INC CLASS A T.OVI.A

"Ovivo Inc offers water treatment products and solutions. It is a provider of technological solutions used in water treatment, recycling and purification."


TSX:OVI.A - Post by User

Comment by TheRock07on Oct 02, 2012 7:21am
231 Views
Post# 20436378

RE: Segment Financials....Very Interesting

RE: Segment Financials....Very Interesting

Cost compression already announced and underway for Ovivo, is expected to save $8 million annually.

Note that had this been in effect in Q2, Ovivo earnings would have been $11.2 million rather than $3.2 million.............a substantial increase.

 

The Pulp and Paper are very profitable, with the MF segment being very small.

 

Along with business model optimzations for Ovivo already announced as well, the chances of a strong return of Ovivo to robust profitability seem to be very high.

 

But, in any event, what they should do here to unlock value is to sell two of the three operating segments.

 

Being very profitable and generating about $250 million in annual sales, the Pulp group should command a very good price perhaps in excess of $150 million.

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