RE:Consensus estimate now $1.21I agree it is strange that there is STILL coverage from only one analyst. This will change.
Of course it would change faster if Supremex needed to raise money by selling equity. The brokers would be jumping over each other to get a piece of the action. And they would all initiate coverage.
But Supremex, with its amazing cash flow, has no need to sell equity. And, in my view, it would be ridiculous to incur the costs and dilution of raising equity-sale money just to get analyst coverage.
Yes, Supremex still looks very cheap. Book value of around $4.50 per share. Sales of $10 per share. Include this recent acquisition and it will be closer to $12 per share. Roughly 25% return on equity.
While inflation is generally bad for stocks, you can see from the last few months how it is very much a mixed bag in that some companies actually benefit from inflation.
In the case of commodity producers such as oil or coal companies that should be obvious.
Supremex is an interesting example of a non-commodity-based firm that has hugely benefitted from inflation. Partly because of the supply chain challenges, and the company's superior management of those, they have been able to push through price increases far in excess of the actual rate of inflation.
But they've also been able to use their strong supply chain / industry position to pick up huge swaths of market share, most of which they'll probably be able to hang onto long term.
Predicting stock prices is generally not my thing. Just this once. Over $7 by early January.