Although few follow CAB anymore personally I like them on a valuation basis. They will be generating cashflow in the range of $100M this year.
Although the market is fixated with the Victorian situation and the possible knock-on effects nationally they remain a true leader in what they do and have a competive advantage over most in the industry.
The market as usual ignores the other business units including the leadership now in bus transport and the struggling UK business which has excellent leverage to an improving UK economy.
They are trading at the same price they were 10 years ago yet have $100M more in sharholders equity and have developed multiple new income streams.
It will be a rocky ride no doubt for CAB shareholders but hopefully a rewarding one.
CAB Price at posting:
$3.79 Sentiment: LT Buy Disclosure: Held
