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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I know you commented on DBO on Monday, but the share price has dropped another 10% since then.The share price has been dropping for almost a year now. I was considering giving it another quarter but I feel mgmt is taking the company in the wrong direction with the talk about moving into the Motion Industrial training market, which is very niche. That and the numbers continue to disappoint every quarter. Is it time to let DBO go? Earnings are mid June.
Read Answer Asked by Adam on April 27, 2017
Q: Sorry another comment that Members owning CRH may find comforting and certainly shows the clear difference between it and Valeant/Concordia:

"At March 31, 2017 , the Company had $9,232,240 in cash and cash equivalents compared to $9,507,004 at the end of 2016. The decrease in cash and equivalents is primarily a reflection of cash generated from operations, less cash used to finance acquisitions during the first quarter of 2017"


Looking at the Cash Flow Statement: they generated CF-Op of $8M and acquisition cost was $7.5M. Net Debt did go up ~$3M to fund some distribution to non-controlling interest (need to dig more into note 4 for details).


The main point through is CRH earns real cash and finances its acquisitions mainly from its cash flow and not from out of control debt - as the Motley Fool article was suggesting.
Read Answer Asked by Jennifer on April 27, 2017
Q: You mentioned CRH Management will hopefully address the short report in their Management call tomorrow. They already took a first jab in the quarterly release:

"While acquiring less than 100% of an anesthesia business will obviously create more rapid increases to non-controlling interests versus purchasing the entire business, our joint venture strategy does significantly increase our opportunities for accretive acquisitions. As a result, our acquisition pipeline remains strong and we are confident in our ability to deliver on our growth strategy."
Read Answer Asked by Jennifer on April 26, 2017