RE:RE:Thoughts on Q2 2022 Results?
So far in the first half of FY 2022, PHA has generated about $3.1 million in free cash flow (correct me if I am wrong). I assume that doubling this for a full year projection is reasonable and hopefully somewhat conservative. We arrive at $6.2 million for the existing business. I have no info on the acquisition's free cash flow, but $1 million seems conservative given the other provided financial metrics.
So perhaps about $7 million in free cash flow per year currently. This should allow them to pick up one or two extra tuck-in acquisitions in Ontario directly out of cashflow if they wish, compounding the metrics.
The question is, will we sell off below 50 cents in the meantime?
I'm keen to hear the bear case as it is all too easy when investing to fall subject to confirmation bias. If my analysis of the company is faulty, I'd certainly like to learn from it.