CNXC
Spins off alot of cash flow and alot of free cash flow, the plan is to get debt down significantly in the coming years. Considering they generated 229 million in cash flow from operations in q4 alone. So My guess is debt will be consistently coming down quarter after quarter, which is a plus, because if you believe that it generally mean Interest expense will drop over time from here. I never see debt as that bad of thing as long as the company has the free cash flow to pay for it, and I don't mean the interest, I mean to litterally systematically let cash flows get the debt down quarter after quarter. If that is happening it will be accretive to earnings in the ong run which is also a plus. Furthermore, The company with the acquisition is suppose to be accretive, and obvious more accretive like every acquisition, when synergies start to get factored in which is expected over the next couple of years to enhance the profitability of the acquisition. It really comes down to a matter of execution, if you believe they will execute there plan, and get debt down with cash flows, and get the synergies out of the acquisition they are expecting over the coming years. The stock is absurdly cheap here, and will have a significant run in the coming months and possibly the coming year or two as well. If you don't than the stock is a value trap. I obviously believe they will execute on getting the debt down, and getting synergies out of the acquisition which will increase profitability of the acquisition and make it more accretive than it is when the brought it. Time will tell. Not exactly priced for perfection, so I feel good about my entry point. All is just my opinion, and I could always be wrong though.
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