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Discussion Starter · #1 ·
Does anybody follow MartinRea, I've bought and sold the stock on a few occasions over the years and feel they are really beaten up right now. Unless their is something I am missing, I see upside from here.
 

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I don't know about them.

Some of the negatives I see is they don't pay dividends, they have not demonstrated consistent growth or consistent profits, BV per share has been declining, it has volatile price action with high beta, their 5-year low is around 2.00 so there is still lots of downside from here, they are only just at their 200-week average, this is a low operating margin business and a low net margin business, their accounts receivable is way up, their inventory levels are way up.

On the plus side, they do trade at a low P/B at 1.18 and a low P/E at 8.9. They also seem to have a fair amount of EBITDA compared to EV.

I guess I am not that convinced that this is a good business or a great entry point.
 

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they have not demonstrated consistent growth or consistent profits,
They seem to surprise the investor by missing estimates way too often for my liking. It seems to me that they do not have good control of their business or at least a relaxed attitude towards producing results. What good is a cheap stock if the estimate of earnings, which is what is making it look cheap, is unreliable.
 

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Discussion Starter · #5 ·
I don't know about them.

Some of the negatives I see is they don't pay dividends, they have not demonstrated consistent growth or consistent profits, BV per share has been declining, it has volatile price action with high beta, their 5-year low is around 2.00 so there is still lots of downside from here, they are only just at their 200-week average, this is a low operating margin business and a low net margin business, their accounts receivable is way up, their inventory levels are way up.

On the plus side, they do trade at a low P/B at 1.18 and a low P/E at 8.9. They also seem to have a fair amount of EBITDA compared to EV.

I guess I am not that convinced that this is a good business or a great entry point.
Thanks for your input, I think they miss their earnings as they are trying to grow the business to quick. To many aquasitions, and not keeping control. I still see up side from here.
 

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Lawyer investigating MartinRea International Inc. (MRE.TO)

Thanks for your input, I think they miss their earnings as they are trying to grow the business to quick. To many aquasitions, and not keeping control. I still see up side from here.
I am replying to your thread because you posted on Canadianmoneyforum.com in regards to MartinRea International Inc. (MRE.TO). I am a lawyer with a particular interest in protecting shareholder rights.

My law firm, Sutts, Strosberg LLP (Toronto and Windsor), is investigating the circumstances surrounding MartinRea International Inc.’s December 19, 2013 announcement that its net income may have been overstated by C$10 to C$18 million, spread over the years 2005-2012. Since the announcement, the company’s share price has declined significantly.

I am providing you with a link to the biographies of the securities litigation team at my firm:
Jay Strosberg: http://www.strosbergco.com/lawyers/jay-strosberg
Patricia Speight: http://www.strosbergco.com/lawyers/patricia-speight
Alex Constantin (me): http://www.strosbergco.com/lawyers/alex-constantin

If you think you can contribute to our investigation, I urge you to contact us. My direct, confidential line is 519 561 6231. There is no cost involved to you.

Best regards,

Alex Constantin, BSc, LLB, JD
email: [email protected]
direct line: 519 561 6231
 
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