Opinions
Mohsin Bashir
Colabor Group Inc.
GCL-T
SELL
Mar 18, 2015
Stock price when the opinion was issued
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A distributer to restaurants. They ran into some debt trouble and cut their dividend. Now we are back in recovery mode. As they pay down their debt investors will become more interested. He is still a little skeptical and would like to see a couple more quarters. He is concerned about a lack of revenue growth.
A Top Pick in December and August. Did well at first and then had a couple of bad quarters and they lost a contract. The insiders keep buying it, so he is still Long and has high hopes for it. Hoping that when earnings come out in about 2 weeks, there will be a positive surprise.
(A Past Top Pick Dec 2/16, Down 45%) It was a turnaround that checked all the boxes. It started off okay but the wheels have fallen off. A vice chair has invested a lot of money and this gives him hope. Q3 of this year was supposed to have been the bottom. If they turn it around the stock could triple.
(A Top Pick August 21/2017, Down 58%) Likes turnaround stories like this. Started out well, but then the wheels fell off. Has kept nibbling at the stock. Management has been refreshed. 1B in revenue on a 40M market cap. He’s anticipating 30M per year of extra EBITDA. Starting to see light at the end of the tunnel.
This is a matter of a company that has been poorly managed. Cash flows that are being generated are just not enough for the obligations that it has. What makes it even tougher is that there are competitors in that same grocery distribution space that are literally eating their lunch.