Post by
Sukhi19 on Mar 11, 2018 4:23am
CC
I listened to CC through Skype from Canada on March 09 (As webcast did not work on my laptop) and it was not clear. Again listened to the recorded version and would like to modify my views.
NCIB: The final step of TSX giving approval is left which should take 4-6 weeks. I am sure they would buy back below $9. They did not want to disclose the details; which is understandable.
UK Investment: They do not want to start the business by organically sign on customers (Cold start). They would like to acquire an existing business to use the same as a spring board. Invested amount is with in their risk tolerence threshhold as a company. This is my interpretation of what they said.
Customer Attrition: It is part of such business. They have been showing net customer gains before this. They feel that it may continue for a couple of quarters.
SOLAR: They said it would get profitable by year end. They must be basing their claims on information they have. It is small part of their business and if it turns profitable, it would be a great help to the margins and diversify their business.
Distr: They have confirmed the present level of ditr for 2018 which means +10% income for this year is confirmed.
SHORTS: It is a very thinly traded stock and with gain in unit price after results, selling is likely to ebb. If there is some good news along the way, the shorts will find it hard to cover and their gains can be wiped out in a jiffy. In the meanwhile their investment will keep eroding by 10% (payable every month). I do not think very many people are shorting this stock.
TAKE OVER BIDS: They have cash and unit price has retreated a lot. Somebody may like to bid for this trust which will provide longs with a nice premium.
RISKS: There are risks but most of those stand mitigated as company has grown in size and have cash availabilty. Management holds 6% at a much higher unit price. Institutions participated at much higher unit price. Pay out ratio is respectable. Debt is low which ensures added safety.
Analyst targets will give us some indication of their understanding. Customer attrition and solar may weigh heavily on their decisions.
Comment by
RusticHit on Mar 12, 2018 12:39pm
Sukhi You are saying 100% Invested in this stock means 100 % of Your $$$ into this that means all your eggs in Basket ???is that Right SO much Trust in This company
Comment by
Sukhi19 on Mar 12, 2018 1:04pm
By yesterday I meant Friday.
Comment by
RusticHit on Mar 12, 2018 1:47pm
Thats Big Investment in this company if i am not wrong you are holding about 500000 Units 3-4 M investment in single stock , Multi M Indian
Comment by
Sukhi19 on Mar 12, 2018 2:00pm
No Rustic. It is not that big but it is big for me and at my age. I am sorry if I miscalculated percentage of units I sold. It is an unintentional error. I won't like to give you the exact number of unit we hold but it is between 14-17% of the figure quoted by you.
Comment by
RusticHit on Mar 12, 2018 2:53pm
Lol i started Buying big today when i Guess your holdings well You are still holding Big if not what i was Guesssing before ,HOnest Mistakes happens NO worry ,So You are Retired at Young age if You are spending 3 Months every Year in India .Lucky
Comment by
Sukhi19 on Mar 12, 2018 3:17pm
Most of the bad news is in. Hopefully we should see NCIB approval soon. I won't consider Q4 results as bad. Initial reaction was positive. Pullback after lower revised targets is understandable. I would settle for $10 which is 25% gain from hereon plus 10.4% yield. It is worth taking a risk.
Comment by
ronin1 on Mar 12, 2018 5:00pm
Hopefuly we going up from here. I am long 8000 shares at 8.38$