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United Protection Security Group Inc V.UZZ



TSXV:UZZ - Post by User

Comment by theinvestor22on Nov 30, 2012 5:09pm
121 Views
Post# 20669007

RE: RE: RE: RE: RE: Q3 results are out...

RE: RE: RE: RE: RE: Q3 results are out...

liquid: Even though Cramer is a pretty weird guy, I do agree with him that it's not a good idea to own shares in a company if your only investment thesis is that you're going to get bought out.

 

 

Here's why I own the stock. UZZ lost money in 2009, lost less money in 2010, made money in 2011 and should make more money in 2012. Underlying eps is greater than 1 cent per share, with more likely to come from acquisitions and synergies. Q3 was not the greatest quarter, but we're no longer seeing those wild net income swings of a couple of years ago and I do think there's better to come. And, either way you slice it, there's way more value here than the price would indicate even with the ownership overhang IMHO.

 

 

In terms of a buyout, with the number of shares insiders own, I don't think they'll want to dispose of the company until they've maximized net income. I have no idea when that will be, but I don't think it'll be anytime soon. After all, why go to all the trouble of front end loading the cost of Ontario expansion (i.e. hiring a guy to oversee the Ontario operation), if you're just going to sell off the company before that expansion has been completed. If someone has heard something contradictory from Freddy, please feel free to post it; I for one would certainly want to know.

 

You might not agree with any of this, of course.

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