SUUIF - Superior Plus: Recent Price Weakness Is A Good Buying Opportunity
Investment Thesis
The share price of Superior Plus Corp. (SUUIF) [SPB.TO] has pulled back over 15% in the past month due to a weak Q3 2018 earnings as well as concerns over its bloated debts. We believe the decline in its share price is overdone as there are several catalysts that should help support its EBITDA growth in 2019. These catalysts include: (1) synergies to be realized from its acquisitions, (2) potential tuck-in acquisitions in 2019, and (3) and balance sheet improvement. Superior Plus is currently trading at 2.5x multiples below its historical average EV