CDN.V - Canadream

Discussion in 'Canadian Stocks Message Boards' started by Ellford, Jul 5, 2016.

  1. Ellford

    Ellford New Member

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    So for those of you that haven't known about Canadream, then you must have been living under a rock over the past couple of years. This is an "unusual" company, as it's the first of it's kind that I know of to go public in the RV rental business.

    Why I'm telling you about this (amongst the obvious fact that you've likely seen all the Canadream RV's all over your local community) is that when the US dollar is high against the CDN dollar, this company makes a killing. Instead of vacationing abroad to the US, Canadians are staying close to home, so the RV rental business is booming.

    I initially found this stock at .29/share on my Vector Vest screener as a strong buy and couldn't believe this wasn't a privately held company. I investigated their financials and found them to be totally sound with record profit year after year, so I went heavy into them at .29/share. I sold my holdings at .88/share less than a year later for a 200% gain. After I dumped my holdings (and likely a whole bunch of others did the same), it dropped down below .70/share, so I picked up more at .65 and sold again at .75/share for just a 15% gain, but I needed cash for another big buy - I should have stayed in, as it went over $1.

    Now for the past couple of years, I've told a close group of investors that I think this is a $2 stock and I'm not just talking out of the left side of my face while the right is smiling. Last month, they announced plans to expand more into the East coast of Canada by purchasing another lot in the Ontario region. The stock rose to around $1.15/1.20 a share and likely more people dumped it to make another profit.

    If you purchased Canadream on June 30th for $1.03/share, you're in for an amazing ride. With the recent acquisition of land in Ontario, you'll see this stock move to the $1.50 range within a year.

    The ONLY things holding this company back from hitting the $2/share mark this year or going even higher, is they're not offering a dividend AND they are (currently) staying on the Venture. If either of these 2 things change (offer a dividend or move off the Venture to the TSX), you'll see this stock move to the $5 range and it'll be picked up by small-cap fund managers... It's also not easy to buy into Canadream until current holders sell off, as it's a thinly traded company on the exchange as most people are holding onto it for a long-term investment in their portfolio.

    Do your own investigations and let me know what you think. I know when you buy a stock the plan is to sell it and you should never fall in love with a stock, but this is one I truly love - maybe because it's truly Canadian...

    :)
     
  2. hollyhunter

    hollyhunter Member

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    CDN.V has an ongoing P/E of 5.26, which indicates that it is undervalued. RSI & Stochastic Oscillator sitting in a prime position. Would like to see a break above 1.25. http://canada.stoxline.com/q_ca.php?s=cdn.v
     
  3. Ellford

    Ellford New Member

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    It'll go a lot higher than $1.25 as it's a company that continues to make profits, continues to expand, and continues to thrive in a high US dollar age... As long as the US dollar is as high as it is, more and more people will be vacationing at home (Canada) and this is an amazing option... Where I live, I've seen so many Canadream RV's cruising around, it's crazy...

    Vector Vest has a value on this company today of over $1.50/share...

    It'll go a lot higher than that if they announce a dividend to shareholders...
     
  4. Ellford

    Ellford New Member

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    Bounced to $1.51 the other day with the announcement of revenues for 2016:

    Revenue: $43.9 million - 29% increase
    Net Comprehensive Income: $3.3 million - 53% increase
    Cashflow: $25.8 million - 28% increase

    Stock is back down to the $1.25 range but I predict a big bounce in Oct/Dec when the financials come out showcasing the summer rental periods... with the high US dollar, we're seeing more people vacationing at home and using these services more and more...
     

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