Q: Hi there,
I saw this company that got my eye. What is their business models. Is the company cash flow positive and dividend can continue to be paid out. Can their business model continue to make money over the next 10 years.
Also, can they continue to buy back shares.
I saw this company that got my eye. What is their business models. Is the company cash flow positive and dividend can continue to be paid out. Can their business model continue to make money over the next 10 years.
Also, can they continue to buy back shares.
5i Research Answer:
MCB provides services and equipment to the energy sector, such as drilling equipment and replacement parts. It also makes heavy duty trailers. It is small at $88M market cap, and cheap at 10X earnings. The 3.11% dividend was raised in March but it has been omitted in other cycles. The balance sheet is strong with $13M cash and the dividend can likely continue barring a huge drop in fortunes at the company. It has lost money in some years. Insiders own 5.4%. With cash and cash flow, some buybacks can likely continue.