Very busy month. 3 new company’s profiled ($MTLO.v, $DWSN, $SVT) and lots of updates.
Let’s get to it.
- Corby Spirit and Wine Limited (tse: $CSW/A.to & $CSW/B.to)
- Reported their fiscal Q1 2021
- Strong q
- Rev up 12%
- Opex down 14%
- Net earnings up 68%
- Strong q
- Dividend upped to 0.22/share
- Yielding almost 6%
- They have made notes that they don’t expect this to continue for the full year
- Some pull forward for holiday season but higher than prior consumption may continue due to reinstated lockdowns
- Reported their fiscal Q1 2021
- OneSoft Solutions ($OSS.v)
- JV to expand presence in Middle East – find it here
- Released Q3
- In line with expectations
- Rev up sequentially and slightly up yoy
- Best MD&A in the Canadian small cap space
- New pay as you go sales model being trialed
- A few customers in the trial phase – likely to be announced in 2021
- Admitted that doubling of 2019 rev won’t happen this year
- Recro Pharma ($REPH)
- reported results – mixed bag
- rev up from Q2 but still down yoy
- positive
- seeing some wins in business development
- some renegotiated of debt to push out current payments and increased flexibility
- negative
- still no new CEO
- still high cost debt
- reported results – mixed bag
- Pulse Seismic ($PSD.to)
- reported Q3 and was a tough q
- sales down to 1.8mil
- still generate 860k for shareholders which shows how little their operating costs are
- interesting that they had very little traditional data sale revenue and had a transactional sale
- trading at about 50mil MC and a little more than 14x annualized FCF at the most depressed biz environment in the company’s history
- You can see how low the active rig count is in Alberta relative to the prior 10 years

- Information Services Corp ($ISV.to)
- Reported a pretty decent quarter
- There was some catch up from previous quarter as the economy in Sask reopened
- Trading around 12x EV/EBIT and a little over 4% yield
- It will be interesting to see if they do another acquisition in a couple of quarters and/or increase the dividend
- Indigo Books & Music ($IDG.to)
- Reported fiscal Q2 2021
- Results were better than I was expecting
- No questions on the call from analysts – I continue to think I’m the only one watching this one
- Also announced an addition to the board that seems like a good fit
- The holiday quarter is the most important quarter for IDG, it will be interesting to watch as Canada managed the 2nd wave of Covid
- Sangoma Technologies Corp ($STC.v)
- reported fiscal Q1 in line with expectations
- they really are navigating the current environment very well
- still looking to deploy cash from recent financing – I’m expecting something soon
- reported fiscal Q1 in line with expectations
- Viemed ($VMD.to)
- Reported Q3
- Revenue was up 22% yoy
- Still seeing impact from covid getting into hospitals and preventing new customer wins
- Thinking there would have been even more growth if this wasn’t the case
- Ancillary sales at 18% and growing fast
- I liked how they focus not on incremental gross margin as the ancillary side of the business grows, but incremental gross profit in dollars
- Some temporary PPE and equipment sales due to the pandemic
- Still see this as a testament to mgmt. being nimble and adapting
- Really seeing some gross margin compression
- Prepared remarks had dialogue about a potential acquisition
- Will be interesting to see if they find a potential company to acquire
- They have 32mil in cash at this point
- I continue to hold
- Reported Q3
- Sylogist ($SYZ.to)
- new CEO announced
- seems well credentialed to execute their M&A strategy
- McCoy Global ($MCB.to)
- New credit facility that gives them some additional flexibility and lower borrowing costs
- Released Q3 results
- Rev way down
- Adj ebitda positive
- Backlog stable at 10.6 mil
- Continue to wait while things turn around – NCAV is stable to support margin of safety
- Friedman Industries ($FRD)
- Reported their fiscal Q2 2021
- Smaller loss sequentially with some better expectations for Q3
- Capital expenditure project costs are coming in higher than anticipated but I do appreciate them investing in the business
- Freshii ($FRII.to)
- Reported Q3 results
- Non event as they are just above EBITDA breakeven
- Closed a few more restaurants
- Good news is that cash balance (and my margin of safety) is being maintained
- Martello Technologies Group Inc ($MTLO.v)
- Released fiscal Q2 2021
- Numbers were below what the market was expecting and MRR was lower than I thought it would be
- I believe there was higher expectation for organic revenue growth
- Will keep monitoring the position
- Announced a partnership with Rapid Circle (a Microsoft Gold Partner)
- Further validates their value to customers in my opinion
- Released fiscal Q2 2021