Post by Dollarboyon Feb 02, 2021 11:11am
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Post# 32446741
Iindigo's Q3 numbers on February 4th (Thursday)
Iindigo's Q3 numbers on February 4th (Thursday)On Thursday evening after market's close we will get the Q3 numbers. Despite lookdown and missing "tens of millions" [of revenue] I expect net cash to be strong because Indigo has proven since Day 1 of corona that they have a strong focus on cash flow.
In previous 6 years the net cash position has grown by around 130-150 MCAD in Q3 due to seasonality. Since cash was high already in Q2 it may be prudent to guess that Q3 will add "only" 60-70 MCAD so that we reach a net cash position of around 7-8 CAD as of December 31th, 2020. If it is somewhat less, that is also OK considering that the stock is trading at a clear discount to net cash. Not only a discount to net cash by end of Q3 (Dec 31) but also in Q1 and Q2 net cash was higher than current market cap. Net Cash in last three quarters (Q4, Q1, Q2) was 119, 110, 137 MCAD.
I hope that Indigo has used the corona crisis to figure out if there are restructuring potential that will make margins improve in the future. If margins improve and you combine it with the net cash position there will be a great fire work and the stock price will soar :) Let's see what happens. Friday's trading will show if the net cash is enough to please investors and if further investors enter into the stock.
Exciting week!