RE:Q3 price action - heavy sellingCanaccord guys seem to agree. Target price
INCREASED to $11 from 10.50
Will be interesting to see what the other firms have to say........................................................
malx1 wrote: With an hour to go, almost $5mm worth of shares have sold today, pushing the price into $8's.......
Looks like an overreaction to a Q3 that showed material revenue growth combined with serious erosion of CMG's profit margins.
Free cash flow flat year-over-year.
I think the reaction here is overdone.
After reading the MD&A, I had figured we would see some upgrades from analysts, maybe we still will.
Once acquisitions are digested, this company could generate .50-0.60/yr free cash flow.
$15-18 share price at 25-30x FcF.
Guessing that the erosion of operating margins is scaring some people out of their shares.
Gotta give these guys time to find efficiencies, digest acquisitions, cross-sell to customers, build up the business. Doesn't happen in 3 months.
I figured the stock would be +$1.00 today, instead we are almost -$1.00.
Either I'm an idiot or the market has become skittish about this growth story.
Time will tell.