You have rightfully been a critique of the company's growth prospective for some time now and your opinion appears to have changed little or not at all even after this 'fluffy' update. Is that because they are not providing any guidance yet on these growth opportunities they have identified or started pursuing?
HP are talking about going from providing refurbishment for 3 countries up to 150. Of course, ISP Tek aren't gonna land every contract there but it would be safe to assume they are going to be offered a few of them. Heck, they are opening a new facility in Mexico within the next 4-5 months. "The decision to open the new facility follows growth in the volume of printers, monitors and other electronic devices that require refurbishing and resale." The Mexico facility is said to be provided refurbishment for North America, but I wonder why they picked Mexico rather than a new facility in Texas where they're already working.
Circular Planet has collected 1.3m cartridges in the last 8 months - let's call it 2.5 million annualized with ramp up - which is less than 1% of the 370m produced each year. CLG state they are in discussions with 3 more OEMs hoping to close the deal in 2024, as well expanding into new regions this month with more on the way. No guidance given however.
A second TonerPlas facility being constructed, though relocating the first one will impact EBITDA by less than 1% for a few months (my guess) of delays.... I extrapolated that 1% figure, added a 2nd facility to Melbourne city, rolled that out nationwide and came up with perhaps a $10-15m per annum increase to EBITDA. Whether "less than 1%" means 0.9% or 0.1% I don't know.
Anyway, in my view each area of the existing business (that was mentioned) is growing organically and seems to be at or near the start of it's journey. So my question again is, is your issue still with organic growth or is it now the lack of financial metrics to sink your teeth into?
Appreciate your brutally honest opinions on this platform. Cheers.
CLG Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
(20min delay)