Post by
STOCKMAN70 on May 07, 2017 9:43pm
NYX
My take is that management needs to renegotiate lower interest rates, restructure the debt and continue to increase revenues at double digit growth to recognize the potential if they are only able to realize 30% EBITDA. My preference would be to reduce debt (improving the chances of better borrowing terms) before spending millions on moving to the TSX.
Also, I think management would have come off as having more integrity and competence if they would have owned up to the impairments on the conference call - why not just admit you overpaid, management has learned from the mistake and are taking steps to ensure it won't happen again going forward? They would have earned my respect more than blaming IFRS rules.
For NYX success comes down to debt maintenance and cash flow in my opinion. To base the performance solely on EBITDA gives management too much credit in my opinion - If someone loaned me $330m I could buy a bunch of assets (and overpay) and achieve a great EBITDA as well but that wouldn't mean the company is going to thrive or even survive in the long term if you can't make the debt maintenance payments.
I recently took a small position as there is very good potential but It is in the hands of a CEO that based on past performance has not made the best decisions in my opinion.
Not wanting to sound overly negative and if they can ever get 35-40% EBITDA Shareholders will be rewarded!
Glta
Comment by
STOCKMAN70 on May 07, 2017 9:48pm
Apologies, should have read margins instead of EBITDA on previous post