RE:Peter hodsonI failed to get into this last winter. Been watcing this steadily decline. The shelf prospectus got my eye and hopes up. But the 10 mi in revenue vs Mkt cap just rubs wrong with that prospectus on the shelf. I grant that any future aquisition can always be accretive but how much? An aquisition isn't always dilutive, but with only 10 mill in rev, it would be hard not to be in this case. At what price would they issue shares when this has been dropping for months?
Debt is another issue. While it has been historically cheap generally; with only that much money rolling through the door, how cheap can they get it? It's almost 80 million of debt as it is. It's alwasy easy to say "they can service the debt". But by how much? Will there be enough left over to save for the next aquisition?
I'm not saying this is a total washout. But my money isn't going to go here just yet. I honestly need it lower to capitalize on the fact it is one of the few Canadian names in the space. That has some value for a play, just not yet for me.