Opinions
Bruce Murray
Intertape Polymer Group
ITP-T
BUY
Sep 18, 2018
Stock price when the opinion was issued
You might be interested:
(A Top Pick Sep 11/20, Up 100%) The advantage is they provide non-plastic tape and packaging materials. Amazon is a large customer. It is water-based tape. Has huge capacity and coming on-stream in time for internet sales. Will continue to benefit from online sales.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company pays good dividends of 2.4% and is cash flow positive. Balance sheet is expanding and it is profitable. Debt is of slight concern but it can cover interest expenses and is trading at cheap valuation. Management raised guidance. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS was at $0.50 which beat estimates. EBITDA was short by 1.9%. Guidance was raised for revenue and cash flow. Supply chain and cost issues are the main concerns. Issues should be resolved next year and underlying trends seem to still be good. Unlock Premium - Try 5i Free
He thinks the dividend is sustainable. This is a Amazon play--all these packages need tape. The company received a big insurance settlement a year and a half ago and rebuilt a plant, then they got good business from Amazon and the result was booming growth. In recent quarters, there has been some disappointment. Longer term, he sees the company as well run, as one of the two largest players in the industry and he expects it will be fine. He is buying today against a $28 target price. He sees a substantial capital gain potential if a few things go right.