Yesterday AGM meeting Yesterday, i attended the AGM and visited the plant in the afternoon.
I was able to speak to 4 of the Paschini.(Jean, Pierre, Pasquale and James).I was also able
to talk with J.F.Boursier.
In my 47 years of investing, i have NEVER met such a nice CFO.
Every shareholders who can attend to next years meeting should do soo.
In one of the bay, they were working on a Hydro Quebec contract.Our host (he is with DRX since 1998)told us that Hydro Quebec is very demanding in the spec.but that these contracts were very lucrative.
He also told us that while nothing is never 100% certain, there will be a lots more
contracts bidding for Hydo Quebec in the coming years.
They also have done works for an Ontario Hydro company.
Prior to retiring, i worked for 22 years for a steel company.DRX steel plant operations are as simple as they get.The plant is modern and welll maintained.That is why the capital cost requirement will be low for the foreseable future.
I was amazed to learn that the new Zebau line hardly needs any maintenance.Our host said that the machine
was working 20 hours a day and only needed a bit of grease once in a while.
So far, it has never broken.Even them are surprised of how reliable it is and so maintenance free.
I had read that this machine replaces 6 men.Our host said that it was more like 8.
They all seemed very confident to win phase 3 of Lilly.Again,there can be no 100%
warranty on that.
My $500 million estimate of phase 3 was said to be in the ball park.
I was also told that the award could come in more then one announcement.
They said that Lilly was very happy with the work being done by DRX,so no reason
not to win the next HUGE phase.
The cash reduction was only a timing of the receivable coming in.Had the quarter close
a few days later, the cash would have been as high as the end of the year.
I was also told that even with the cash reduction of the 3 million share buyback,DRX will have
as much if not more cash at year end next year(January 2025).
The buyback will be accretive to EPS.
And yes, Micro calculations of the EPS being 64 cents not 47 because of the DSU and PSU
is right on.
Beside not wanting to jinks the stock,this is one reason i did not try to predict the EPS.
I thought it could bring the EPS way down.Was i ever surprised yesterday morning.
I went to the meeting prepared and had 12 questions.I got answer on the 12 of them with one on one informal
talk with J.F. Boursier and the Paschini.These guys are honest and straighforward
I could go on and.To summarize, if you want to buy DRX stocks, you won't be buying them from me.
I'm in for the long run with what i have left of my initial position and will buy some more
on any meaningful pullback.
The stock will go up, down, sideway.no one can predit the daily movements
But i firmly believe that it will be MUCH, MUCH higher in 12, 24 months.
This company as tailwind like never before.
P.S. Yesterday's volume on all platform was a stunning 727,000
Today, it should be north of 350,000.
Like Retiredcf wrote"Likely short term traders are booking their profits and being replaced by long term investors. GLTA"
After such a runup, this is normal.