Jason Donville Sangoma Technologies Corp. STC-T BUY Jun 05, 2024

Another tough one. Deep value play. Management changes. Still tons of free cashflow. Next quarter, should hit guidance. Doesn't look like a big deterioration in the business, will take time to work through. Buy at these levels.

A favourite of his 3-4 years ago, but sold it after an acquisition, but paid a lot for it and that hit their profits. Also, executives sold a lot of stock. Decent company but there is better Canadian tech.

Very high free cash flow yields. Major transition in company as it moves away from M&A growth model. New CEO will be interesting to watch. Recent change in earnings guidance a little bit of a concern. Would recommend holding stock. 

It was a top pick in 2021 but has gone through a huge transition with a big acquisition. Has a new management team. With deterioration in financials it is not for growth or quality.

It's been disappointing, making bad capital allocation decisions. New management projects good numbers ahead, so it's a show-me stock. Hold, if you already own, or watch the next few quarters before entering.

Owned a large position a few years ago. Has since sold. However, new CEO is expected to be a lot better. Continues to watch the company, and might buy again down the road. 

Has been a wild ride in past years, but they are now on the right path under current managers. Metrics like margin expansion look fine. Is now trading at a huge discount to intrinsic value and can re-rate further as performance continues.

Previous business structure not very well integrated. New CEO very impressive. Still cheap, and he's looking at it.

The chart shows a massive spike up, massive drop, and now recovery in the past year.  They likely paid too much for a company in 2022 and were trading at a high PE. He had added shares in 2023-4 after a new CEO started bundling products, focus on margins and integrated companies. Has been doing a good job. He expects them to return to growth this year at 10% organically and 18% EBITDA margins. Looks cheap, half the PE of peers.