RE:RE:RE:Thoughts on the results?cpeczek wrote:
I took that the same way. I would rather they continue the buybacks while the shares are depressed. It is better in the long run.
Company aims to carry debt limit of 2x trailing ebitda. Normalized ebitda was around $24mm prior pandemic.
Total debt was $50mm at end of Q2 2021.
Let's say debt is $52mm at end of Q3 2021.
If total debt target is about $48mm, company could be there in 4 months.
Maybe we all read management's outlook differently but what I'm seeing in the language and debt levels is that the business could certainly be positioned to pay a partial dividend by Q1 2022 if Alberta does not face further covid lockdowns.
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The company's dividend remains temporarily suspended. A decision to reinstate the dividend in whole or in part is reviewed at regular intervals by the board of directors. In the next months, the company will be focused on completing construction projects and rebuilding working capital balances until confidence that full and sustained recovery in operations is reasonably assured." They could have said, "over the next several quarters..." Instead, management suggests that over the next "months" the company aims to complete capex and rebuild its working capital until there is confidence in a sustained recovery.
Sor the the time being, I am reading there is a strong possibility of a dividend starting within 6 months barring further economic/covid lockdowns.
Keep eyes on hospitalizations in Alberta. I think that news is solely responsible for driving the price action of GH's shares at this point in time. From about 90 to about 150 over past 2 weeks. Would not be surprised to see 170 after the weekend. At some point, enough people will have antibodies and could fight off virus at home without hospitalization. We are closer to the end of the pandemic tunnel than we are to beginning.
This is a special time for Gamehost: Recovering commodity prices, recovering economy, capex close to complete and properties are open for business. Time to see how the horse runs. Whether dividend takes 3, 6 or 12 months to be reinstated, it won't have a material impact on current valuation.