Dear Fellow & Potential CAF Investors, With the recent global crises, wanted to started a new conversation thread to explore and discuss different view points on why CAF is or could be a stock to watch/hold, moving to 2021.
Conversation starter point 1. Was the intention of Angus Benbow (CEO) taking an on-market share buy-back of 10% premature in regards to timing? (my view) No, as they have a healthy balance sheet, and if they already proposed 20% reduction in pay (The Board and Executive team ), so if the current income is facilitating current costs/spend, then why not provide confidence back to the current shareholders by a Share buy-back. please also observe the statement of "No Debt" as of 31 March 2020.
Conversation starter point 2. Will CAF maintain their "healthy balance sheet" moving to 2021. (my view) Yes, as they have moved to a more strategic process to deal with their clients/customers, which entail shows more confidence that CAF is more then a face to face business. CAF has moved to a more recurring fee based revenue strategy with their clients, which makes them well positioned to respond to the ever changing environments when needed.
Conversation starter point 3. Will companies like CAF be needed in this deep recessions? Ill leave this question open for others to answer.
Regards Vig009
CAF Price at posting:
8.2¢ Sentiment: Hold Disclosure: Held
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