RE:RE:RE:RE:Completely undervaluedThese operational insights are great. Not something I completely considered as I didn't intend to be in GEO for long, until the Q1-21 results were released. It initially appeared on a stock screen and when I looked further, I was sold on the opportunity based on their financial strength as opposed to in relation to their peers.
For the same argument I'm using for GEO, I can see a doubling of OGD. I can't get there with MDI (only $9CAD of EBITDA on $100m of revenues and a share count of 81m?)
GEO is essentially debt free and MDI and OGD will be debt free in short order or don't have debt levels to be concerned about. I don't know what MDI's latest acquisition will do for the company, but I didn't intend to look beyond GEO because if it's profitability.
Insider ownership (and the resulting reduced public float) are factors to consider and I'm not opposed to either. The Seeking Alpha article which was released after my post provided some data that I wasn't aware of, but that and a mention by 5i Research are reasons why I'm comfortable holding until Q3-21 results are released.
Diversification to me, with the right business model, is not a bad thing if the company sticks to it's core operations. I'd be more concerned if they were shifting focus that would significantly impact profitability.
In my valuation calc, I already discounted Q1-21's EBITDA by 20% ($8m vs. $10m) and with summer activity to come, I can only see reported profits increasing.