Q: Hello,
What are you thoughts on ADF’s current valuation and attractiveness as a buy. Personally I look at it on a forward growth rate as very very attractive after being nearly cut in half. Am I crazy?
What are you thoughts on ADF’s current valuation and attractiveness as a buy. Personally I look at it on a forward growth rate as very very attractive after being nearly cut in half. Am I crazy?
5i Research Answer:
**edited due to P/E error**
At 9X earnings we consider it quite attractive, with good earnings growth expected, leverage to potential large contracts, a solid balance sheet and good execution. Revenue rose 34% last quarter. There has been no news in a couple of months, and we think the insider sale/buyback was misinterpreted by investors. It remains one of our favourite Canadian small caps.