December 2020 Update – $REPH, $PSD.to, $STC.v, XTC.to, $VMD.to, $SYZ.to, $MTLO.v

No new profiles this month. It’s been busy with holidays and Alberta has gone into a second lockdown.

• Recro Pharma ($REPH)
  • New CEO announced (finally)
    • Has a decent pedigree and looks promising
    • The shares have been running a bit, not sure exactly why at the moment
  • George McCabe (Portolan Capital Management) disclosed a 5.47% position in REPH
    • A quick google search shows that they own many positions and that REPH makes up 0.47% of their portfolio. Not exactly meaningful.
• Pulse Seismic ($PSD.to)
  • Announced a 3.05 mil data licensing sale
    • That is more revenue from the previous 3 quarters
    • Q4 revs at 5mil
    • 2020 revs at 10.9mil
  • Some language in the news release about debt repayment and extension of the credit agreement
  • I think the story has been de-risked to some degree and shares have not really rebounded, but alas this is energy related
• Sangoma Technologies Corp ($STC.v)
  • Had a data breach during the month of December
  • an update was provided before the end of the month; some highlights
    • no customer bank information was compromised
    • products aren’t affected
    • CEO took responsibility
    • maintaining transparency
• Exco Technologies ($XTC.to)
  • Reported fiscal Q4 2020
    • Quarter was better than I expected
      • Auto segment bounced back
      • Aided by wage subsidy
    • Bullish comments about the future on the conference call
  • I am expecting the dividend to be increased next year
  • This goes to show that it is so hard to predict how covid will affect these businesses
    • This team has adapted really well to the new environment
• Viemed ($VMD.to)
  • Acquired 5% in VeruStat for 600k with cash on hand
    • Sounds like it will be accretive in 2021 and seems like a nice new revenue stream
    • It’s nice to see that they are looking at alternative ways to grow the business other than just adding vent patients
  • Shares didn’t really respond to the news
• Sylogist ($SYZ.to)
  • Reported fiscal Q4 2020
    • Rev up 10% year over year
    • Margins up as well if you remove acquisition related costs and executive bonuses (it’s up to you if you feel that is fair)
    • Still waiting on some activity on the acquisition front
    • Have $43 mil cash plus access to $40 mil credit line
  • These developments are positive. I will be watching this one closely.
• Martello Technologies Group Inc ($MTLO.v)
  • Announced some sales wins
    • $375k in bookings
    • 120k in users
    • Over the next 12-36 months

Happy and prosperous investing in 2021!