Post by
ascii2 on Aug 21, 2012 9:19pm
Glentel oversold condition
Glentel's fandamentals are very strong. It had more than 45.6 million dollars cash and cash equivalents on hand as of 30 June 2012 compared to 30.1 million as of 31 December 2011. It added another 1-1.5 million dollars by sale of money loosing satellite business to infosat and another 12 million dollars by sale of old tower sites that needed major renovation costs. Icing on the cake is it has all frequencies on hand. Thus with nearly 60 million dollars of cash on hand at the end of year it has strong balance sheet. It paid off it's debt raised to buy 225 plus stores in USA with only.The Company has an outstanding $25.2 million fixed-term loan with a chartered bank, repayable in monthly principal and interest installments of
.7million at the rate of 3.65%, due September 2013, that is secured by a general security agreement on the Company’s assets. It also has 10 million dollar credit line with same chartered bank.Working capital is $39.2 million at June 30, 2012.These numbers speak for themselves. Glentel has organically grown 545 corporate locations across north america. . Historically, the Company’s business is stronger during its 3rd and 4th quarters,while the 1st quarter is generally the weakest quarter of the year. This seasonal pattern is tied closely to traditional cycles in consumer spending. As at June 30, 2012, a total of $4.4 million of dividends were paid to common
shareholders. During the year ended December 31, 2011, dividends totaled $9.7
million to common shareholders. During the 4th quarter of 2010, the Company acquired Diamond, a U.S. mall-based Verizon Wireless “Premium Retailer”. It is consistently profitable company delivering dividents. With PE ratio of 8.4 it is one of the best company on TSX. Show me a single company that is matching consistent performance of GLN. The launch of the Samsung Galaxy SIII in thefinal week of June 2012 helped fuel a strong finish to the quarter, and this popular phone will sell well in the 3rd quarter. This, combined with the rumours of the iPhone 5 coming to market later this year, sets a positive tone to the second half of the year as GLN come into the 3rd and 4th quarters, which are traditionally the Company’s two strongest quarters with the back-to-school and holiday selling seasons. Considering it has only 22.4 million shares and taking cash out, its PE ratio is less than 8. IMHO it deserves $25 per share valuation.
Comment by
m1ax on Aug 21, 2012 10:25pm
100% in agreement with you.
Comment by
m1ax on Sep 01, 2012 5:09pm
I came to the same conclusion. Way to go indeed.