Colabor Group Inc T.GCL

Looking like Deep Value

[DanielDarden123]

With an annualized PE~3.5, reduced debt and an improvement in working capital, some would still consider this a value trap. However, dominance in Quebec as the recovery is occurring leaves this co. In a favourable position in a stable industry. Fear of a value trap will keep some away until sentiment changes and the sp improves accordingly. Being early is where the profits are really made but patience will be required because most want to be comfortable before buying.

[Mick67]

I see it at sub 5x EBITDA and a FCF yield (2 year average to normalize for working capital) above 25%. I don't see as a value trap but an opportunity. With leverage ratio sub 2 and FCF growing post covid managment may be wise to buy back stock aggressively or become a take out target.  Either way should be good outcome for shareholders. Capex is way lower than D&A so cash greater than

[prophetoffacts]

This post has been removed in accordance with Community Policy

[oldinvestor64]

Attended the conference call this morning. Both CEO and CFO reiterated the solid position that the company is right now. Improvement on margins, managable debt level, establishing own brand, local procurement, potential accreitive acquisitions and overall positive business environment with the easing of covid restrictions. Let's hope the market sees  all this positively and rewatds this

[DanielDarden123]

The 2 recent acquisitions in Quebec verify that this co. Is “Springing in Action”. Will astute investors act on these catalysts or wait until the sp moves up to a more comfortable level? History tells us that most will wait until the deep value is gone.

[DanielDarden123]

Looks like the fear is subsiding here and more are recognizing the potential now. Being early has its’ rewards but humans love comfort so that must be realized and explains why buying higher happens.

[bucheroncapital]

Well said, good points