RE:RE:RE:RE:RE:RE:RE:RE:BNN - recommended by David Barr todayNo worries mate, appreciate the discussion. You're right in that the disclosures are limited - you have to go a bit on faith and the nuggets that you can pull up from conference calls. Microcaps are a bit challenging to work with in my experience. Part of the reason that they always have lower P/E and lower valuation is that there is not a lot to go on.
I would say the investing premise for this one is that you have to go with the new management's philosophy. You're right when looking at past years - organic growth was negative and this company was not on the right track as they were milking their dividends and not investing in their product. I believe they've turned the corner, but I understand your point. At the end, you have to really believe in management and if you don't, you can't invest.
On the stock buybacks, the P/E now looks worse than it probably is if you look at the cash flow. Because of the large acquisitions done in 21-22, they have huge expenses for the amortization of the intangibles per the purchase price accounting - these are all non-cash. So when you look at their operating cash flow, they can afford their couple of thousand shares here and there that they're picking up now. The FCF yield is more in the 10% range. quite positive as well.
Enjoyed the discussion with you. Best of luck in your future picks looking for gold, even if we differ on this one (I'm currently up 25%, so happy right now with SYZ). If you do pick up something, please feel free to share it as well as I'm happy to get into the DD with you.
Cheers.