RE:RE:RE:RE:Hundreds of Millions in Tax Loss Pools
Hadituptohere wrote: If they are expecting 20mm in free cash flow from this in year one, I'd like them to say so publicly. I think they would owe it to shareholders to disclose that expectation.
The company said:
- EBITDA margins are expected to grow above 20 per cent within the next two years
- Since 2001, the company has grown revenue at a compounded annual growth rate of approximately 20 per cent
- the company requires limited capital investment requirements and high free cash flow conversion
And the company also has hundreds of millions of forward tax loss pools. So $20 million per year in cash flow from this business generating $130M revenues seems possible to me. And this cash flow will presumably also grow 20% per year.
I'm not buying but I'm not selling either. I'm willing to wait. I bought my shares during the Aeroplan/divvy suspension fiasco when the share price crashed so I'm stiill well in the black and I invested in a turnaround story and I think this acquisition is yet another step in the turnaround.