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Swiss Water Decaffeinated Coffee Inc T.SWP

Alternate Symbol(s):  SWSSF

Swiss Water Decaffeinated Coffee Inc. is a Canada-based specialty coffee company and a green coffee decaffeinator that employs the Swiss Water Process to decaffeinate green coffee without the use of solvents, such as methylene chloride. The Company also owns Seaforth Supply Chain Solutions Inc., which is a third-party green coffee handling and storage operation providing integrated and efficient coffee handling services to Swiss Water and other coffee importers and coffee roasting companies who receive or store green coffee in the Metro Vancouver area. The Company operates in three geographical areas: Canada, the United States and other international markets. Its coffee brands include Equator Coffees, DOMA, Talking Crow Coffee Roasters, Three Keys Coffee, Roast House Coffee, Kuma Coffee, Numa Coffee Co., Bridge City Coffee, Java Pura Coffee Roasters, Savorista, Numa Coffee Co., Cafe Grumpy, Barista Alley, and Blue Spruce Decaf Coffee Co.


TSX:SWP - Post by User

Comment by puma1on Jan 02, 2019 10:18am
115 Views
Post# 29176518

RE:RE:RE:RE:SWP is a good choice

RE:RE:RE:RE:SWP is a good choice
there are some serious cash costs still to complete the structure - $31 million as at Sept 30th and so that is large relative to the current size of SWP.

the dividend is not a zero risk yield - then again no dividnd is zero risk -  -  but if the rollout on the expansion hit a wall, this cash drain would be ripe for a cut.

they have to balance the capital expansion of the building, the growth investment expansion and the diivdend capital return to the shareholders so there are a few balls in the air.

on the plus side, they have an net investment in working capital that is really strong - $26m tied up in receivables and inventory and the liabilities are $7.5 m leaving almost $ 20 million on the table.  that is well over a 3 times coverage so if they dropped that coverage down below 2 , they could immediately access $7 million of their $18 m line of credit. strikes me as a sensible move
 
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