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ADF Group Inc T.DRX

Alternate Symbol(s):  ADFJF

ADF Group Inc. is a Canada-based company. The Company is engaged in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel-built ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. Its products and services are intended for the five principal segments of the non-residential construction industry: office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes, and transport infrastructure. The Company operates two fabrication plants and two paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products. It has the capacity to manufacture approximately 125,000 tons of structural steel annually.


TSX:DRX - Post by User

Post by takeomega3on Jan 07, 2025 5:55pm
290 Views
Post# 36393278

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ViewIt’s good to see some share buybacks, but in many cases, buybacks alone don’t have a dramatic impact on the share price.
 
There’s been a lot of discussion here about the company’s strong fundamentals and how undervalued it is. While I agree with these points, an important aspect is being overlooked: this is essentially a private company. Insiders hold the majority of voting power, giving them control and removing any real pressure to act in the interest of retail investors.
 
What’s more, these insiders cashed out significant amounts when the stock was at its peak, suggesting they have little motivation to push the share price higher anytime soon. In fact, a lower share price might align with their interests if their long-term goal is to take the company private at a discount.
 
Additionally, one of the largest institutional holders sold their position. For the share price to gain momentum, strong institutional backing is essential—but that support is now lacking. Given the risks associated with insider control and policies that appear to prioritize their own interests, it’s unlikely new institutions will build significant positions.
 
While the fundamentals remain solid, the combination of insider dominance and the lack of institutional support makes the stock’s upward potential uncertain.
 
That said, if the company were to announce special dividends or take steps that clearly show they value shareholders, the stock could potentially move higher.
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