1Vancouver, British Columbia, October 2, 2013 - Investment firm Mackie Research has initiated coverage
on Mosaic Capital (TSXV:M) (TSXV:M.PR.A). Analyst Raveel Afzaal gives the company a buy rating, and a 12 month target price of $16.20, a premium of 45% to the $11.15 price the day the report was issued.
Calgary based Mosaic, is an investment company that currently owns a portfolio of established businesses. The company's objective is to create a diversified portfolio that provides sustainable and growing free cash flow to its shareholders, by acquiring private small and medium sized enterprises that are competitively positioned in industries with good long-term prospects, and possess proven operational track records, robust free cash flow generation capabilities, low capital needs and experienced management teams.
Mosaic currently owns or has a majority interest in seven industrial businesses and one real estate investment company.
Mackie Research estimates that on a consolidated basis, the company generates:
47% of its revenues from Manitoba, primarily in the commercial construction industry,
19% from Alberta, primarily in the oil & gas industry,
17% from Saskatchewan, primarily from oil & gas and mining, and
16% from British Columbia, primarily from pulp & paper and marine industries.
Analyst Raveel Afzaal stated, "We estimate the market opportunity available to the company to be approximately $5.9 billion in the small medium enterprise universe. Mosaic is well positioned to capitalize on this growing market opportunity with approximately $25 million in cash, an experienced management team, and a strong track record."
The shares are currently trading at $11.35, well below Mackie's target price of $16.20. The company has 7.9 million common shares outstanding, paying an annual dividend of $0.12 for a yield of approximately 1.1%. Insiders own 51% of the common shares, which aligns management interests with those of other stakeholders.
For more information, please visit the company's website www.mosaiccapitalcorp.com or contact Tim Taylor at 403-270-4658 or email firstname.lastname@example.org.
For more information about Mackie Research or to obtain the report on Mosaic, contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
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