BNN Market Call TodayIn my opinion,in the last Q result, there are 2 weak areas that not impressed much to all of us. First , a payout ratio suddenly jumped from 60% to 80%. Secondly a Margin was down from 22% to 17%.
Peter Hogson, RBC and Canacord analysts in the last meeting with KWH CEO, they all have a same question in mind that Dividend is sustainable i.e safe and sound or not? and I strongly believe all other analysts, fund managers, institutions and mostly all of value investors like us have a same concern....Dividend is safe and sound for the rest of year? or ever?...
Of course, it's tough answer....because nobody in the world knows exactly how much cie can generate every day, week, month and year...That's why all cie live by a quarter as far as they can do..for dividend.
When first come to investing in KWH in late 2016, like a routine work, I looked at Management, business, liquidity and fundamentals.To be honest , I just love Dividend no matter what but cie have to be in comfort zone ( Cash flow, payout ratio, debt)....My portfolio brought me 18% return in 2017 , KWH and NVU were the 2 leading team....
There is no genius, no CEO, no Management and no Board of any cie in the World can control the Stock price regarding any size and any business. They only can do is to defend any inappropriate and nonsense attack and activity by raising they voice in order to protect and benefit their businesses and shareholders
As I said before and I still believe "Earnings" next Q result will be very good based on recently meeting with analysts and statement in the letter of Mgt...
If cie bought back shares in the last few days, That's an excellent deal for NCIB.
I only hope the two areas I mentioned above will be improved and Dividend is safe til end of 2018 ...That will be a perfect score!
Good luck to all value investors!