CEMATRIX Corp T.CEMX

BASIC DD completed... Here is where I am at so far.....

[Aarman4]

Please correct any wrongs, preferably with links to documents, and share any thoughts positive or negative from what I have. This is so far my objective look over. I am not one to usualyl invest outside of "lifetime holds", and I still am unsure if I am ready to judge this in that way yet at all.

***********************************************************************

Still in progress 19/mar/2021

 

 

PRO'S:

$130mil? of contracts in the pipeline

looking at doubling pipeline in near future to $250mil+

30+% traditional margin

Proprietary mixture process(is this patented??)

Joint marketing agreement with LaFarge Canada(what about usa?)

Considerable future growth market 

Considerable potential growth of entire industry that needs/desires their product

Management buying shares(10+% before recent financing) and is interest-aligned with shareholders

Acquiring complimentary companies such as PIGCO and MOS

MArket cap of only 41.3mil @0.64/shr

Debt from Cematrix taken on for Aquisitions and plant/equipment investments eg..growth

 

CON'S

115,831,000 future shares outstanding(only 70,000,000 currently)(future 40% dilution)(41mil in debents and warrants meaning cash influx attached to dilution)

Debt taken on at relatively high interest

All 3 arms of company(PIGCO, MOS, CVX) carrying debt

Moderate to heavy Dilution of shares on an annual basis

potential takeover target

reliant on government spending for majority of future growth

Possibly a cyclical company

 

 

Summary:

 

Currently fair value for where the company is at today, and likely undervalued based upon where they will be by the end of 2022 based upon contracts and backlog completion.

 

For the time being, this seems to be a bet on the next several years, with the majority of it's growth upside coming from government spending in the USA. If this is handled properly, and they use their leading position in cellular flowable concrete to grow and become dominant, while at the same time their product becomes ubiquitous as opposed to novel, they could become a major industry leader in middle and large infrastructure projects.

 

I worry about the potential cyclical nature of their business, the moat(or lack of) around their process and product, along with the interest rate they carry debt with... 14%?????? That is Visa numbers.....The steady and heavy dilution of share count concerns me greatly as well.

 

I am currently considering taking up a small position, with a 2021 target of $1 - $3 depending on contracts and the potential for market enthusiasm.

**********************************************************

 

So that is just my introductory research into Cematrix so far, I will continue to do more in the hopes that I fell confident enough to make a purchase, or not make a purchase.

Cheers!

[kingscorpion]

Aarman $130 is already in contracts $350 is in the pipelines I am still waiting for them to answer some of my questions which also includes whether this product is patented or not. They are also easy to get hold of should you have any questions or concerns. Just say your are looking to start a position in CVX and that you have few questions. My preliminary research let me to believe the stock will

[Aarman4]

Show me the $130... All I can gather is a lot of it is verbal, which I do not count on when it comes to investing my money.   Cheers  

[kingscorpion]

The verbal offer ones where by companies contractors government officials call to get a quote a pricing on certain work etc etc are under pipelines. Contracts is where most either signed or sitting on the desk to be signed as in work is done both sides more or less agree to the terms and is sitting at the desk for final approval I have contracts at $89 mil as of end of Dec as per Jeff's email

[kingscorpion]

Bush where did you get your $130 mil from

[Bushman3333]

To  Kingscopion , Last year ,they had 106 or 108M back log, this year  got another contracts worth over 30mbucks  Canadian , that 23 or 24 US, right ???

[Aarman4]

$89mil @ 30% margin is almost $30mil..... With a P/E of 10 we are looking at a market cap of $300mil if it is all positive, so that is awesome, I just want to see it....... The problem with a lot of this is still the debt and high interest debt..... I understand the debt, when you work on a project, it takes incredible amounts of capital to do it, and you are usually not paid for it until

[kingscorpion]

Aarman the email to me says not just $89 mil but more than $89 mil so I guess they are trying to make it look like as if they are so busy dealing with contracts that they know its way more than $89 mil and could be all the way to $130 mil So your calculations are almost exactly the same as mine The price projection based on just what they have right now iif we were to go just with $89 mil s

[kingscorpion]

Email to me also says they are cash flow positive

[Heynow27]

Total debt is $17,500,000 with all loans ranging 6%-9%. The loan with 14% was paid in full Q2 2020. The $22,000,000 cash injection will let them pay back to pay back much of their debt.    Sales in US have more than doubled even in 20 sales in Canada have been cut in half. The rise is US sales are the result of acquisitions and growing demand while the Canadian sales drop is a result