One company that got me interested is Avarga (U09 stock code). The company has three business segments in (i) Building Construction in Canada/US, (ii) Paper Mill business in Malaysia and (iii) Power plant business in Myanmar.
(ii) and (iii) are stable business which have seen little growth and a fall in profits during the last COVID hit year.
Taiga Building Products- a 61.2% owned subsidiary listed on Canadian Exchange
This segment interests me. Due to the bumper year in Canada and US housing starts, Taiga’s profit grew tremendously and the company is trading at 3 time PE on the stock exchange. Analysts in Canada are predicting that Taiga Building products profit was only a one-off event. In the past, Taiga traded at a band of 6-8 times Price Earnings in the Canada Exchange. Its current market cap is valued at C$313 million.
However, I think Taiga is due for a re-rating soon because