Post by
Register123 on Nov 26, 2016 1:59pm
Devil's Advocate
Could someone comment on the following concerns I have with Pivot:
Their debt is quite high (current ratio under 1, debt-to-equity ratio very high), yet they are still making acquisitions (Teramach in October 2016 in which "terms of the aquisition were not disclosed")........Makes you wonder, even with their cash flow, how long they can sustain the dividend, pay down the debt, and spend money integrating and expanding their businesses, especially if interest rates rise.......
Though their top line revenue numbers look great, their margins are quite low......I know they are trying to generate more profitability via managed services, but this will likely take a long time to establish and it remains to be seen how successful this effort will be...........Hard to see them take away business from much larger and more profitable companies like CGI Group who have well-established, higly profitable managed services........A takeout by the likes of CGI Group is also doubtful since Pivot is probably much too small to make a significant dent in CGI's bottom line (CGI is a serial acquirer, but they usually go hunting for much larger companies).......
Any input would be appreciated........
Comment by
lscfa on Nov 26, 2016 2:32pm
Ingram Micro has a lower net profit margin than PTG and is being bought out by a Chinese firm for $6 billion.....
Comment by
edsasha on Nov 27, 2016 8:54am
I don't know about 1.50 in a year - we'll see - but I do know that not too long ago the management of the time tried to take this company on a course towards the private mode by offering every shareholder 70 cents a share. That's a 167% gain right there, and not too unreasonable an expectation, given current circumstances. p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Helvetica}