Aug 2021 Update – $CSW/, $OSS.v, $REPH, $ISDR, $, $STC.v, $, $, $, $, $MTLO.v, $SVT, $, $, $URB/, $MCR.v, $KUT.v


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Thoughts on Market Activity

Nothing constructive.

What I’m Reading

I have been reading the book Scarcity. I am enjoying it. Coming from a place of privilege it frames decisions made by those who may have a harder path than my own.

Posts this month

Developments on Companies Mentioned

  • Corby Spirit and Wine Limited – $CSW/ & $CSW/
    • Reported fiscal Q4 2021
      • Q was in line with expectations
      • Compression in margins for the quarter due to higher opex
  • OneSoft Solutions – $OSS.v
    • Reported Q2 2021
      • Not much has changed
      • Rev was up with an easy comp
      • Still waiting on some significant news with new customers  signing
  • Recro Pharma – $REPH
    • Reported Q2 2021
      • Showing gradual improvement in operations
        • Verapamil seems to have stabilized
        • Some initiatives underway on business development and clinical trial services
      • Reaffirmed guidance of 68-72 mil and 15-17 mil adj ebitda
    • Purchase of IRISYS
      • 50 mil total
        • Half in cash
        • 6.1 debt
        • Remaining in 9.3mil shares
      • Interesting addition, but comes with dilution
        • Not sure if the ebitda and revenue guidance included this purchase
      • They will provide a more comprehensive update on the Q3 call
    • I’m continuing to monitor
  • Issuer Direct – $ISDR
    • Good q
      • Decent top line growth
      • Private market customer growth up 50%
      • Margins at high end of range
        • Sounds like they are sustainable from this level
      • Looking to continue to invest in products to drive ARPU higher
  • Information Services Corp – $
    • Reported Q2 2021
      • Rev up 44% from low base last year and Paragon acquisition
      • Real estate activity in sask is really helping
      • Some delays due to governments focused on covid and economy
      • Paragon likely sees a gradual increase in activity when subsidies are wound down late in the year
  • Sangoma Technologies Corp – $STC.v
    • Announced timing of an Annual and Special shareholder meeting to approve a share consolidation and (eventual) US lisitng
  • Viemed – $
    • Reported Q2
      • Rev growth and patient growth returning but not to pre-pandemic levels
        • Expect more growth in H2
      • The company is working to train their sales reps to better support patients with remote monitoring
      • They are also getting prepared in case there is another wave of lockdowns and their sales reps will have a harder time reaching physicians in hospitals
      • Covid related revenue is winding down as expected
      • No material update from OIG findings
      • Guidance was for about 10% yoy core biz growth
  • Sylogist – $
    • Reported fiscal Q3 2021
      • Below my expectations
      • Going to keep an eye on it
        • Currently yields 4.6%
  • McCoy Global – $
    • Reported Q2 2021
      • Rev was weaker than expected
      • They had a delay in recognizing an order which made the top line look worse
      • They have had strong orders for the first month of the quarter
      • MCB has been a company that sees activity recover later than many other service companies so not surprising we aren’t seeing strong top line growth
      • They continue to invest in their digital roadmap
      • PPP loan was forgiven
  • Freshii – $
    • Reported Q2 2021
      • The majority of the quarter had heavy lockdowns so the quarter is not a good one to measure the business although provides some insight into what mgmt. think of the business
      • They are trialing some new things like energy bites
      • They are driving more revenue from dinner
      • They committed to investing in supporting franchise partners with another 1mil
      • Still have lots of cash – waiting to see what they do with this
      • I am holding and will wait for the company to demonstrate it’s ability to execute during a more normal environment
  • Martello Technologies Group Inc – $MTLO.v
    • Reported fiscal Q1 2022
      • Was weaker than I expected
      • Expenses increased quicker than I expected
      • Hurt by higher $CAD
      • The conference call did have some positive things to say
    • I have been following for a couple of quarters since I sold shares, so far it was a good decision
    • I’m going to stop updating MTLO here, but keep an eye on it offline
  • Servotronics – $SVT
    • I’m no longer following this closely – I won’t do a deep dive unless it trades at a discount to NCAV
  • FAX Capital – $
    • Reported Q2
      • Book value at the end of Q2 is $5.45 per share which is up nicely
      • Still have over 80mil in cash to deploy
  • Pizza Pizza Royalty Corp – $
    • Reported q2 2021
      • Still plugging along
      • Increased the distribution by 9%
      • Increased store count by 5
  • Urbana Corp – $URB/
    • Reported Q2 2021
      • Still trades at large discount to NAV
  • Macro Enterprises – $MCR.v
    • Reported Q2 2021
      • Better than I expected
      • Gave guidance to near 300mil in revenue in 2021
        • Was 250mil
      • Was carrying an extra 20mil in receivables at the end of the quarter that they received after the quarter ended
    • Continuing to hold
  • RediShred Capital – $KUT.v
    • Reported Q2 2021
      • Was a good q and ahead of my expectations
      • Lots of positive comment on the call
      • Acquisition pipeline strong

Long $OSS.v, $ISDR, $STC.v, $, $, $, $, $URB/, $MCR.v, $KUT.v

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