Savvy Trades and Investments

[gilead23]

ARC I got suckered in for more too

I'm not selling it though. If you normalize free cash flow as NI+Depreciation - capex these guys generated 28 million dollars in 2020 despite the pandemic hit. Historically they have done about 40 million annualized. Given their low capex needs I could see it trading at a multiple of current prices towards the latter half of the year. You just don't see free cash flow yields in the 30% range and that is despite the revenue hit with the pandemic.

I'm not adding at 2 but I think I would buy a whole bunch at 1.50. It becomes an RCMT like play where you would expect opening to have huge benefits for their business down the road.