Post by
InstitutionalPM on Jul 22, 2021 9:20am
Great Q2 Update
Highlights for me were very strong revenue, 93% Cash EBITDA margin and gigantic flow through down to free cash flow that enabled massive debt repayment. Net debt is now only $4 million and they still have about $10 million of sales coming from a deal they announced earlier in the year suggesting they will easily be in a net cash position very soon. They don't need to invest any more capital so all of the free cash flow can go back to shareholders in the form of share buy backs and dividends. I prefer share buy backs at this point considering the enormouse free cash flow yield. They are yielding 15% free cash flow over the first half of the year alone or 30% annualized. This stock should more than double IMHO. GLTA.
Comment by
OptsyEagle on Jul 22, 2021 9:57am
Yes. Debt level should be zero by the end of this quarter so definitely share buybacks and most likely a dividend. I hope it is a reinstatement of a quarterly dividend but they may elect to just give another special dividend. Will be interesting to see. What a great business these guys have.
Comment by
Brigon on Nov 04, 2021 10:51am
Good call back in July. Things looking good for the next little while now.