Decisive Dividend Corp V.DE

Alternate Symbol(s): DEDVF | V.DE.WT

Industrials Conglomerates

Decisive Dividend Corporation is a Canada-based acquisition-oriented company. The Company is focused on opportunities in manufacturing. Its segments include finished product and component manufacturing. The finished product segment, which manufactures and sells products that are purchased and used by end customers as designed. Within the finished product segment are five separate businesses: ACR, Blaze King, Capital I, Marketing Impact and Slimline. The component manufacturing segment, which manufactures and sells products based on specifications determined by its customers for use in its customers’ processes. Within the component manufacturing segment are five separate businesses: Hawk, Micon, Northside, Procore and Unicast. In addition, it has a third separate segment, Head Office, which is an investment holding and management company. Its subsidiaries include Valley Comfort Systems Inc., Unicast Inc., Slimline Manufacturing Ltd., Northside Industries Inc. and Hawk Machine Works Ltd.

TSXV:DE - Post by User

Decisive Dividend Corp

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Comment by Shirtlessnomoreon Mar 10, 2020 8:54pm

139 Views

Post# 30791147

RE:Time to buy more? Any opinion?

Hey swedish, just wanted to be up front as I sold my position here, reason being it just made more sense to move both my DIV and DE to one holding and I chose DIV as it was the best value under the current market conditions. I will be looking to get back in here after I see how the financials are and things even out with this virus thing. Cheers and gl........

Swedish Blogger wrote: Is it time to buy more? I think it boils down to three questions:

Is current dividend safe? I think so, since Northside should add a lot EBITDA and cashflow. The old presentation can be found here: https://decisivedividend.com/spot/wp-content/uploads/Decisive-Investor-Presentation-Aug-2019.pdf

Can they manage the debt over time? They are more diversified now so if cashflows don’t collapse in all companies, this should be doable. Not sure about raising the dividend in this climate, even if they can (and even If it is three years since last time). Reducing debt might be safer. I notice they have payed down some debt, see page 22 in the Q3 report.

When will they buy a new company? Lower share price is obviously not good when paying in stocks. But this also relates to how much room there is to pay down, and reuse the revolving loan to buy more. And naturally, the companies they buy could also be equally cheaper now. Hopefully Dave:s departure doesn’t slow down acquisitions too much.

Any opinion on this?

My personal opinion is that it not should trade at a double-digit dividend yield and for instance 4 CAD is a more reasonable price. Am I missing something? No directly related company news so the big downturn could be a low-free-float issue and a some nervous shareholders getting out?