September Quick Update – $CSW/A.to & $CSW/B.to, $OSS.v, $XTC.to

  • Corby Spirit and Wine Limited (tse: $CSW/A.to & $CSW/B.to)
    • Released their fiscal Q4 and AIF
    • Nothing material to add
    • Still yielding close to 6% and trading at 10x FCF

  • OneSoft Solutions ($OSS.v)
    • Released a private preview version that incorporates Cathodic Protection survey data
    • My understanding is that this will help expand their TAM beyond In-Line Inspection
    • Shares have performed well in the last month being up about 20-25%
  • Exco Technologies ($XTC.to)
    • An early warning report was filed as Kernwood purchased 7.3 mil shares in the open market
    • This equates to 18.5% of the outstanding shares
    • Kernwood is based in Toronto and owns some familiar Canadian names

Leave a comment

Filed under Company Updates

McCoy Global $MCB.to (update)

Very quick update.

I’m no stranger to McCoy. McCoy Global $MCB.to. 

The share price has not performed very well since then. I have owned a small amount of shares thinking that at some point oil and gas activity would bottom and McCoy would benefit from renewed interest in the industry. I have been wrong.

The market cap is now around 11.9mil with an EV of 12.4mil.

Update

  • purchased Draworks in late 2019
    • they assumed some backlog (2mil)
    • complimentary product to their portfolio that would not have been able to build in house
    • 6 mil purchase, had about 6 mil in rev in previous TTM
  • they did release a new torque turn product in Q2 2019
  • they have been working on a remote monitoring solution for customers (Virtual Thread Rep)
  • sales in the TTM have been down due to lower activity (obviously)
    • there is stronger activity internationally than in north america
  • covid
    • salary and wage cuts across the board
    • cut capex by 80%
    • took 2.7mil in PPP loan at 0.98% due April 2022
      • much of this may be forgivin
  • their backlog was down to 8.3 mil
    • although order activity did pick up after the quarter ended
  • from a GAAP standpoint they are net cash neutral as the cash on the balance sheet in 2019 was spent on Draworks

Summary

To me this fits nicely in a net-net basket. They business has been impacted and expectations are very low. In the meantime, management has pulled the levers they can in order to lessen the blow. The are not bleeding cash in a time when there is essentially zero interest in their industry.

 

Anyone else own this one?

 

Dean

*the author is long $MCB.to at time of writing

Leave a comment

Filed under Company Updates

August 2020 Quick Update – $CSW/A.to & $CSW/B.to $OSS.v $REPH $IDG.to $STC.v $PTG.to $VMD.to

Sorry. This is a week late.

Some news on companies mentioned here.

Corby Spirit and Wine Limited (tse: $CSW/A.to & $CSW/B.to)

They posted a decent quarter.

Divi was maintained which is positive.

OneSoft Solutions ($OSS.v)

Posted a weak quarter. Mentioned some delays from covid.

They also posted an fairly material update that I think provides further evidence that they can capture sales on pipe that isn’t pigged.

Recro Pharma ($REPH)

Poor quarter. Much poorer than I expected. I posted an update with some more thoughts.

Indigo Books & Music ($IDG.to)

Stock has been on a tear, I own no shares. On July 10th, a filing was posted on SEDAR indicating the a fund (FGP) liquidated all their position. They were 57% of the volume since December 10, 2019.

Sangoma Technologies Corp ($STC.v)

Updated investors that they will beat previous guidance. They seem to always under promise and over deliver, even during covid. This is the type of data points that give me comfort when you get overweight a position.

Pivot Technology Solutions ($PTG.to)

Reported quarter. Revenue was down quite a bit more than I would have expected.  Maintained the dividend which provides confidence moving forward.

Takeover by Computacenter for $2.60 or about 40% premium. Expected to close in November after a special meeting on Oct 23, 2020. Potential arbitrage to keep an eye on.

Viemed ($VMD.to)

Filed a prospectus for up to 100 mil. I’m assuming they have an acquisition or some very high growth potential in the short term. They aren’t a business that is struggling for cash.

 

The author is long shares of $OSS.v, $REPH, $STC.v, $VMD.to

Leave a comment

Filed under Company Updates