I have recently increased my position in this company, which I have bought and sold many times. I am now going to keep it as a long hold.
The company is growing its production which has increased considerably from last year.
The company has no debt.
The company is only trading at 2.2 x 2013 cashflow.
If there is no increase in price, it is going to get taken out by a bigger company because even if they offer 50% above current market, they would still be getting a great deal. A TD report recently pointed this out. With all the extra cash they are generating, they can afford to take out smaller companies. Either way, there are great things in store for this company. Results are due out on Nov 13. With the drawdown in inventories, there should be a nice pop in cashflow and earnings. The last release was good and yet it did nothing for the stock. How many good releases need to be done before catching the attention of investors?