IBI Group Inc T.IBG.DB.E

Technology Software - Application

IBI Group Inc. is a global design and technology company. The Company offers a range of services, including architectural controls, architecture, bridge engineering, civil engineering, construction management, data analytics, design technology, development engineering, economics/financial analysis, electrical engineering, energy solutions, engineering, environmental assessment, geomatics/land surveying, highway and road design, and indigenous engagement and relations. The Company¿s services also include interiors, land use planning, landscape architecture, mechanical engineering, municipal infrastructure, operations and maintenance, parametric design, placemaking, planning and urban design, public outreach, research and development, software development, systems engineering, traffic engineering, transit planning, transportation engineering, visualization, water resources management, and water/wastewater. The Company has over 60 offices in major urban centers across the globe.

TSX:IBG.DB.E - Post by User

IBI Group Inc

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Comment by patenrighton May 28, 2014 12:03pm

209 Views

Post# 22605615

RE:Valuation and Thoughts

well said reality.   this credit guy is a hoot as well as all the othe usual bondholders who are still unbelievably whining with this latest very generous offer - just disgusting the greed and ignorance here . and penny still wants his 100 lol

i had a good chuckle at his the 21.6 (19 bonus + interest) PV is 12 LOL. nice 25% discount rate there bud lmao
you dont use the current YTM for a discount rate, you use a average rate of return one could get in the market - around 6-9%.   yes current YTM is 25% but that is what IBG investors expect as a return due to the high risk, but if one were to receive the $12(PV) you say in cash now, and then they invest it in a vehicle with average market risk, they will not get $ 21.6, not even close.    PV is more like around 18 using a discount rate of 6-9%

also his statement that the $5 conversion has no value is a joke.   these guys could generate $1 eps come 2015-2016 with some top line growth ( remember company has high operating leverage and small increase in sales really increases the bottom line a lot) and so stock would be $10 with $1 eps and yet he says $5 conversion  has no value.   LMAO

he doesnt even know how to calculate free cashflow.   it is CFO less capx (maintenance only).    IBG had $1.9M in CFO in Q1 but he subtracted the $3.9M outlay for property and equipment WHICH IS NOT MAINTENANCE CAPX - nice try there bud lol

so free cashflow was indeed $1.9M

also, he says need $19M to bring bank line down to 70M, while yes techincally true, he fails to mention  they have $6m in cash as at march 31, 2014 so in fact they only need to bring it down by $13M

and if that were not already enough, he says it would take just 11% of outstanding shares (or approx 2.2M) to pay off the 2014 bonds - uh more like 100% of the shares there bud at $2 price. 45M /$2 = 22M shares - and why this is not going happen.

thankfully we have some informed posters here like myself, calgary and reality and a few others

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