Great PostsExactly all, we are presently in a show me phase for the next two quaters. We are trading 6 x our last quarters EPS. I have between 1.7-1.8 on next quarter and 1.9-2.00 on Q1 in USD. That's US dollars. Canadian dollar should decrease over the next few months so add 1.35 to those numbers for CAD.
the market is pricing us as though our purchase was a disaster and adds nothing to the top line or the bottom line. They are also giving us no organic growth. They are giving us that we will be slowly paying down our debt (if they did not think that we would be lower).
what we need to prove out firstly is that our acquisition adds to top line, bottom line, and EPS growth. Considering we have not missed a quarterly target yet through acquisition I am betting we make the next two. If we do that, then the company model shows we can pay down debt and watch how high we go. In the meantime, the expectations of about 1.75 U.S. next quarter results with our small 6 to under 7 times multiple takes us to 58-62.00/share which we should easily see in January. That's a 20-30% upside from here on 6 to 6.5 times. You can figure out next next quarter yourselves.
If you believe they make their results hang on for the ride and forget all the noise. If you don't, ride it up to just before next quarters results in February and sell at what should definitely be a higher price based on past performance on the size of this acquisition.
Great posts today all and enjoy the rest of the weekend.