Cervus Equipment Corp T.CVL

RE:New CEO w/ interesting history

[Hunter747]

I have only started following this company in the past 3 months but also find it very interesting with several major levers at play.

Not sure if the recent decline to SP is speculation (or insider response) to slow Q2 sales as a result of weather causing poor spring outcomes. Could also be concern of major changes at the top (don’t forget this will trickle down through the old boy’s network), fear of dividend cut or merger/acquisition (Angela’s area of expertise as noted).

Outside of M&A, with her strong financial background, you would anticipate Angela should be focused more on bottom line than sales growth. Her resume shows minimal expertise in business operations or sales execution, so I agree you really must wonder why the board brought her in. There is risk here if she takes too much of a cut at the day-day.

At current price I think Cervus is becoming an interesting/attractive mid-term play. If it takes a hit on Friday due to cyclical sales impact of spring weather, I will probably be a buyer of more. I would speculate that poor spring sales usually catch up over the summer season. This should create the opportunity of a nice Q3 rebound in sales. You than have an opportunity of further SP rebound over coming year(s) if they make the right accretive acquisitions. Not sure what they will do with the dividend or the impact this will have on the SP. It is becoming an issue at 4% levels.

Open to any thoughts on the board.
GLTA
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