RE:Everyone should Listen to the callWhat are you talking about? The call was horrible.
Yes, they explained what they were doing in respect of the dividend i.e. switching from dividends to share buy backs which should support the stock price and better reward shareholders. They were late to take the advice of others and make this change though.
Where the call was just absolutely pathetic was in Allan MacDonald's explaining how they would achieve this new transformation plan they are now putting in place after Allan MacDonald has been there for 18 months. They provided no explanation why their first turnaround plan did not work. They announced a new transformational turnaround plan and only spoke about what they hope to achieve. There were no details. There was no way for analysts and shareholders to assess really what they are going to do differently operationally to achieve better results. Just a bunch of same promised results which they've been doing for almosts 2 years.
The note from TD describes it well:
“We reiterate our BUY rating despite no obvious near-term fundamental catalysts and what could have clearly been better messaging around the company's strategic pivot. TP decreases to $7.50 (from $9.00).”
“Management did not seem to have a great handle on the outlook for Certarus or a firm capital allocation strategy, despite the segment's core Energy sector end market being oversupplied.”
“Our 2024, 2025 and 2026 EBITDA estimates decrease by 3%, 2% and 2%, respectively, despite management's Superior Delivers guidance.”
“Superior continues to lack near-term positive catalysts in our view, as Certarus fundamentals remain weak, and management declined to provide supporting details for its 'Superior Delivers' initiative that it's been hinting at for several quarters.”
Absolutly pathetic. Allan MacDonald made $10 million last year. New management is in order.