Red Flag Alert – Obsessed with a 'Leak'

The rumors surrounding GFL's possible takeover were suspect from the start

Sometimes the story isn’t the one that seems obvious…

Not long ago I red-flagged highly levered GFL ($GFL), the fourth-biggest waste company in North America. My focus was on the large spread between GAAP and non-GAAP free cash flow.

This was a dicey company to write about, since it had already been a battleground stock, of sorts. And Paragon Intel, which does deep dives into company executives, had issued a report earlier this year on the company’s CEO, Patrick Dovigi, with a headline…

GFL: Cautiously Positive. Growth-Oriented CEO Plays Fast and Loose to Scale at All Costs.

The stock drifted since my writeup, but has spiked in recent days on takeover chatter involving a possible consortium of PE companies.

Enter ‘the Leak’

The takeover talk is clearly the headline, but to me, the story is the leak…

It started with the mention of a possible deal in a little-known news service. It was then regurgitated by several analysts (citing that report). Then today, along came a story in the Globe & Mai…