November 2021 Update – $CSW/, $OSS.v, $REPH, $ISDR, $, $, $, $ & $VMD, $, $, $, $, $, $MCR.v, $KUT.v


I use TIKR to quickly look through ideas and check comparable companies. Would recommend. Referral code below.

Thoughts on Market Activity

The market has reacted to the news of another variant that seems to spread quicker than Delta. Governments around the world have reacted quickly by imposing some requirements for traveling to the affected zones (at least those currently affected). It will be interesting to see how effective the current vaccines are against this variant and if the mandatory vaccination movement gains more or less traction. Of course, I have no idea and haven’t changed by portfolio.

My portfolio has underperformed the market this year. It is hard to determine how much has been poor decisions vs. some returns being pulled forward in 2020.

I have been on the lookout for tax loss selling opportunities.

What I’m Reading

  • What The Dog Saw: And Other Adventures by Malcolm Gladwell

Posts this month

  • None

Developments on Companies Mentioned

  • Corby Spirit and Wine Limited – $CSW/ & $CSW/
    • Reported fiscal Q1 2022
      • Revenue down 4-5% vs last year
        • Covid is making yoy comparisons hard
      • Cash balance down from the upfront fee to represent Pernod Ricard brands in Canada
    • Shares seem to have an equal upside vs downside at the moment and I’m going to stop updating CSW.
    • I do think the company represents a decent bet in an income portfolio.
  • OneSoft Solutions – $OSS.v
    • Reported Q3 2021
      • Rev growth was better than I expected
      • I was expecting slightly less cash burn by this stage although they are getting closer to break even and seem to have enough cash to get there
      • They are continuing to add customers (up to approx. 20)
      • Outlook seemed positive
      • Still expensive price to sales so will need high growth to justify committing capital to this company
  • Recro Pharma – $REPH
    • Reported Q3 2021
      • Was weaker than expected
      • I’m watching from the sidelines but won’t follow as closely as prior
      • I am going to stop updating REPH here
  • Issuer Direct – $ISDR
    • Reported Q3 2021
      • In line with my expectations
      • I’m hoping they can outgrow any significant margin pressure from here on in
  • Information Services Corp – $
    • Reported Q3 2021
      • Quarter was pretty good
        • They benefited from Sask real estate
          • Likely wont’ see the same growth in 2022
        • Subsidies ending in Q4 2021 could bring some opportunity for Paragon
  • Sangoma Technologies Corp – $STC.v
    • 7 for 1 share consolidation announced
    • Reported fiscal Q1 2022
      • Slightly stronger than expected and guidance was maintained
    • IPO in the US
      • Issuing 5.5 mil shares
    • Then pulled the share issuance – ???
  • Velan – $
    • Formalized the appointment of Bruno Carbonaro as CEO as they announced previously
  • Viemed – $
    • Reported Q3 2021
      • Seemed like a decent quarter
      • Rev came in at the top end of guidance
      • Guiding to a bit lower growth in Q4 from the core biz relative to Q3
      • Margins slowly coming back
      • Looking to get back to traditional growth rates in 2022
      • Lots of uncertainty
  • Sylogist – $
    • Announced 5.9mil in contracted revenue
      • Good to see some wins
  • McCoy Global – $
    • Reported Q3 2021
      • Was better than I was expecting
      • Backlog is up and outlook is positive from here
  • Freshii – $
    • Announced a new franchise deal in Texas
      • 20 units over 6 years
    • Reported Q3 2021
      • Was weaker than I expected – particularly gross margin
        • Urban locations still significantly affect by covid
      • Not expecting a significant cash burn from Natura
      • Continued to invest in franchise partners during the quarter
      • Long term see lots of opportunity in Canada
  • FAX Capital – $
    • Reported Q3 2021
      • Deployed some capital into Hamilton Thorne during the quarter
      • Accumulating shares in another public Canadian company
      • Purchased 2 mil shares of Avante Logixx
    • I have liquidated my position and will no longer be updating $
  • Pizza Pizza Royalty Corp – $
    • Nice bounce in activity with some more mobility in Canada
    • Still some stores shut down and yet to reopen so I don’t think we are not at peak earnings
  • Macro Enterprises – $MCR.v
    • Reported Q3 2021
      • Results were in line with my expectations
        • Revenue was 110 mil vs 94 mil last year
      • Expects revenue to exceed 385 mil for 2021
      • Trading about 2.5 EV/EBITDA and likely less than 2x EV/EBITDA if they maintain 350+ in rev
  • RediShred Capital – $KUT.v
    • Reported Q3 2021
      • Results were better than my expectations
      • EBITDA grew 53% from acquisitions and organic growth
      • Trading at 10x EV/FCF given my run rate estimate with stable paper prices

Long – $OSS.v, $ISDR, $$, $, $ & $VMD, $, $, $MCR.v, $KUT.v


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2 responses to “November 2021 Update – $CSW/, $OSS.v, $REPH, $ISDR, $, $, $, $ & $VMD, $, $, $, $, $, $MCR.v, $KUT.v

  1. Sridhar

    CSW (Corby) has had inconsistent results in the past and I guess its going to be somewhat similar in future although favorable business fundamentals and financial strengths are positives for the company.
    Some analysts/investors have pointed out to lack of growth/value unlocking opportunity. It seems that exports esp. revenue from export of Canadian products could be an area of opportunity in addition to expansion/growth in existing segments where PR’s presence is established.

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