IBI Group Inc T.IBG.DB.E

RE:2nd quarter Results

[patenright]

cmon glen, dont play dumb - u know those are good results

like i said caillen - odds were very low to nil IBG would report a big enough loss based entirely on
bond amendement costs to tank the the price...

strong ebita ( over 50% higher than q1)

strong cashflow from operations

continued improvement in reducing AR over 90 dys

3% top line growth vs q1

selling assets to improve BS

promissory notes less than expected at 3.6M - thought would be over 5M - looks like most bondholders took the $5 callable option

good progress on credit amendment

net loss a little light in light of sales $2.3M higher than q1 - not sure why - need to see audited statements which are not in sedar yet

all in all, solid quarter  and this is 2 good consectutive quarters and combined with bond amendement complete, you will now get more conservative long term investors ready to come back and buy IBG stock - not all in as would like to see another quarter or two of good results  , but they will start to initate some positions  - i.e 30% of intended final position

slow and steady and my $3-4 year end target I put on this late last year is looking spot on....if IBG can even keep improving that ebita ( ie. up to 8-10M range) in q3 and q4, then $4-5 is doable by year end. 

with another good quarter and more evidence turn around is working, stock will be less of a show me stock and will start to discount forward eps estimates as most normal stocks do.   so with $0.50 of normaliez eps in 2015 ( exclude $4M in consulting fees in 2014 related to bonds)  and with a $10 pe, that is stock of $5 and why by q1 2015 , stock could very well be around that area