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Colabor Group Inc T.GCL

Alternate Symbol(s):  COLFF

Colabor Group Inc. is a Canada-based distributor and wholesaler of food and related products serving the hotel, restaurant and institutional markets (HRI) in Quebec and in the Atlantic provinces, as well as the retail market. The Company offers specialty food products such as meat, fish and seafood, as well as food and related products through its Broadline activities. Its product categories include frozen food products, dry goods, dairy products, fruits, vegetables, meat, fish, seafood, poultry, disposable items, sanitation products and maintenance products. Its Norref products offer over 1,500 products sold fresh, frozen or live, including regional, exotic and eco-friendly fish, all varieties of seafood and processed products. Its Lauzon products include lamb, beef, delicatessen, turkey, game, fish, pork, poultry, veal, cheese, frozen food and portion. It also sells products under private brand, Menu. It distributes around 10,000 food and related products to 15,000 points of sale.


TSX:GCL - Post by User

Bullboard Posts
Comment by knicksmanon Feb 28, 2017 1:49pm
154 Views
Post# 25906641

RE:Now what?

RE:Now what?Q1 is a seasonally weak quarter (look at last year). Also, investors should be expecting additional headwinds including competitive pricing on Lauzon's wholesale business (Cargill is now competiting), a contract loss (no benefit from the closed facility), and increased opex investment to increase its sales force (with no immediate benefits). I also believe profitability improvements from cost reductions should lessen in Q1 compared to last year since cost reductions began to occur in Q1 last year.

So while the shares are down to much more reasonable valuations, maybe buying after Q1 makes more sense. Tough to tell since Fabrice pumps this mindlessly.

And I agree. M&A is what gets this story to take off (at this point). But I think the company needs to repay more debt and look to build its salesforce before doing anything like that. If it does M&A and the shares move past the conversion price (of $2.50/share) and the company naturally delevers...it could do more M&A. That's where I get really excited.

But, I'm still on the sidelines for now.
Bullboard Posts