Mackie Research Initiates Coverage on Mosaic Capital with Buy Recommendation - Video Summary on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - October 2, 2013) - Investment firm Mackie Research has initiated coverage on Mosaic Capital (TSXV: M) (TSXV: M.PR.A). Analyst Raveel Afzaal gives the company a buy rating, and a 12 month target price of $16.20, a premium of 45% to the $11.15 price the day the report was issued.
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Calgary based Mosaic, is an investment company that currently owns a portfolio of established businesses. The company's objective is to create a diversified portfolio that provides sustainable and growing free cash flow to its shareholders, by acquiring private small and medium sized enterprises that are competitively positioned in industries with good long-term prospects, and possess proven operational track records, robust free cash flow generation capabilities, low capital needs and experienced management teams.
Mosaic currently owns or has a majority interest in 7 industrial businesses and one real estate investment company.
Mackie Research estimates that on a consolidated basis, the company generates:
- 47% of its revenues from Manitoba, primarily in the commercial construction industry,
- 19% from Alberta, primarily in the oil & gas industry,
- 17% from Saskatchewan, primarily from oil & gas and mining, and
- 16% from British Columbia, primarily from pulp & paper and marine industries.
Analyst Raveel Afzaal stated, "We estimate the market opportunity available to the company to be approximately $5.9 billion in the small medium enterprise universe. Mosaic is well positioned to capitalize on this growing market opportunity with approximately $25 million in cash, an experienced management team, and a strong track record."
The shares are currently trading at $11.35, well below Mackie's target price of $16.20. The company has 7.9 million common shares outstanding, paying an annual dividend of $0.12 for a yield of approximately 1.1% . Insiders own 51% of the common shares, which aligns management interests with those of other stakeholders.
For more information about Mackie Research or to obtain the report on Mosaic, contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
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Barry Morgan, CFO