Opinions
Jordan Zinberg
Cematrix Corporation
CVX-X
DON'T BUY
Jan 15, 2025
$0.510
Stock price when the opinion was issued
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BUY
They did an 8% convertible debenture that was three times oversubscribed. The company makes "fluffy" concrete. Air is added to concrete that adds insulation factors. Sales are expected to double this year to $45 million, earning the company about $6 million EBITDA. Their backlog is three times last year sales. The book of business they are bidding on is 12 times higher than last years sales. Their product is used in a lot of large infrastructure projects. He owns this personally and sees it trading towards $0.60.
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BUY
He participated in their recent debenture offering. They take cement, twist it, for production of insulating cement. Their book of business is about 3 times last year sales. They are bidding on contracts worth 12 times sales. He thinks this will be well positioned for government infrastructure spending in both Canada and the US. Analyst price targets are around $1.20-$1.25 per share.
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BUY
He owns a lot of this. Earnings are expected to be 4 cents next year. They boast a big $50 million sales backlog, spiking up from last year. The business is quite sound--they remove stones and sand out of cement, so this will benefit from announced infrastructure spending. Upside to come.
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BUY
Makes puffy cement that has insulating potential that can be used for road beds, bridges, etc. Joe Biden's infrastructure plan is a tailwind. The challenge is that the company has great numbers but they do not frame them properly. Their backlog is approximately $100M. Their sales relative to backlog is $12M. Backlog is 5x. Book of business is twice their backlog. It's also a covid play since once it recedes, the concerns in construction will go away. A great opportunity for them to do well.
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BUY
They make puffy cement, an insulator and an alternative to styrofoam. They're helped by Biden's $2-trillion infrastrcture plan. This is a back-to-work story, too, as they have a backlog of paused construction projects to resume by end of this year. He was involved in its recent refinancing--disclosure. A strong opportunity.
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BUY
Watches it. Surprised it hasn't gotten more traction. We need to see the infrastructure bill kick into place. Then the stock should start to move. Partnering with Lafarge. Be patient while the pieces fall into place. Stock price looks to be bottoming, and with money flowing into small caps, this could have a nice move.
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Specialized, more durable concrete. Story makes sense, but the numbers aren't there. Company's been around a long time, but sales haven't grown that much. If the product is revolutionary, why aren't more people using it? Companies with sub-$100M market caps have to be really, really good to justify an investment.