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Atlas Engineered Products Ltd V.AEP

Alternate Symbol(s):  APEUF

Atlas Engineered Products Ltd. is a manufacturer of trusses, wall panels and a supplier of engineered wood products. The Company operates manufacturing and distribution facilities in British Columbia, Manitoba, and Ontario to meet the needs of residential and commercial builders. Its products include roof trusses, floor trusses, wall panels, floor joists, floor panels, project management and site assembly services, and design, engineering and permitting services. It also distributes a range of various engineered wood products for use by builders of residential and commercial wood-framed buildings. These include single-family homes, townhouses, multi-story wood-framed residential buildings, commercial buildings, and agricultural structures. Its subsidiaries include Clinton Building Components Ltd., Satellite Building Components Ltd., Atlas Building Systems Ltd., Pacer Building Components Ltd., South Central Building Systems Ltd., and Novum Building Components Ltd.


TSXV:AEP - Post by User

Comment by tkirk62on Mar 16, 2018 12:32pm
122 Views
Post# 27728306

RE:Wow!

RE:Wow!While the acquisitions in Alberta are outside of the GTA and Vancouver bubbles, they are in Alberta. Alberta comes with a possibly even gloomier sentiment. I personally love the acquisitions (though I would like to see numbers on the latest one), but I understand why the market doesn't. The thing is, you never outperform by going with the herd. In this case I think the market is very wrong, and I'm willing to bet I'll be happy owning a big position in Atlas. 

Right now Atlas is looking at $20 millionish in sales run-rate, and at 10% net margins (lower than now so I think it's very conservative), Atlas is trading at P/E of less than 8 even accounting for some more dilution. 8x earnings while growing organically 20% in addition to the cheap acquisitions is absurd.

A catastrophic housing crash could cause issues, but with the balance sheet and diversification now I think Atlas could weather the storm and probably come out of it stronger on the other side. 
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