Tag Archives: SVT

July 2021 Update – $OSS.v, $REPH, $PSD.to, $STC.v, $FTG.v, $XTC.to, $VLN.to, $RELL, $SVT, $FXC.to, $MCR.v

TIKR

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

They have created a global screener which is great. I recommend playing around with it. Lots of data.

https://app.tikr.com/register?ref=smob7c

Thoughts on Market Activity

Not much to report. The fear of runaway inflation seems to have cooled off to some degree at least for the short term. The delta variant (and uncertain vaccine effectiveness), vaccine hesitancy, staggered global reopening, and the summer doldrums have let to some choppiness over the last month.

My personal underperformance continued this month and for the full quarter. The main culprits are overweight positions in Sangoma Technologies and Viemed. The remainder of the portfolio has outperformed the indexes on the aggregate. Both will have news out soon and it will be nice to get an update.

What I’m Reading

I have been focusing on some more leisure time with family and strength training. Looking for book recommendations.

I am continuing my social media break (mainly Twitter). I continue to only use the app to check DMs. I’m convinced there is value in the app, but I will need to get better at cultivating a timeline that is valuable or considering any time on the app as entertainment and limit it accordingly.

Posts this month

None – sorry ☹

Developments on Companies Mentioned

  • OneSoft Solutions – $OSS.v
    • Share price has been weak lately
      • I think investors are getting impatient and looking for some very material announcements regarding revenue growth and getting to break even
  • Recro Pharma – $REPH
  • Pulse Seismic – $PSD.to
    • Big quarter
      • Rev up to 19 mil
      • Biggest quarter in several years
    • Paid off a bunch of debt
      • Paid of high cost subordinated debt
      • Paid back some of their revolving facility
      • At end of June they only have 4 mil in debt left
  • Sangoma Technologies Corp – $STC.v
    • Provided a business update for Q4
      • Rev of 167 mil
      • Ebitda to exceed 30 mil
      • This bodes well for integration of Star2Star
  • Firan Technology – $FTG.to
    • Reported Q2 fiscal 2021
      • A little weaker than I expected
        • Toronto facility had higher than normal absenteeism due to Ontario gov having a program to increase paid time off
        • Other locations also down
        • Tough simulator comps for this year
      • A bit of currency headwind
    • Still monitoring
  • Exco Technologies – $XTC.to
    • Reported fiscal Q3 with an easy comp last year
      • Outlook was positive
      • Expect capex to exceed $40mil in 2021, which means almost $15mil in Q4
        • Continued to see increased capex in 2022 and likely 2023
      • They set out some 5 year targets
        • 10% rev growth
        • Higher EBITDA and Net Income as well
        • $1.90 EPS in 2026 with no acquisitions
        • New programs, market growth, and market share gains
  • Velan – $VLN.to
    • Reported q2 fiscal 2022
      • They guided for a weak quarter but it was still weaker than I expected
        • Supply chain issues
      • Backlog highest since 2012 and working capital is ramping to meet demand
      • Continuing to hold and give them a couple more quarters to execute before drawing conclusions
  • Richardson Electronics – $RELL
    • Very strong fiscal Q4
      • Guidance was also strong
      • Sounds like lots of opportunities across the 3 different business lines
      • Will be interesting to see if they maintain this momentum
    • Received a patent for wind turbines
      • This is the ULTRA3000
      • A direct one for one replacement of GE batteries and chargers and can be installed with no modifications
  • Servotronics – $SVT
    • Noted this in the 10-K – The Company determined that its previous disclosure regarding management’s evaluation of the effectiveness of internal control over financial reporting was inaccurate as such evaluation was not based on a suitable, recognized control framework in accordance with Exchange Act Rule 13a-15(c).
    • Gotta love microcaps
  • FAX Capital – $FXC.to
    • Nothing new to report but trading at about 0.77x book which is a discount to peers
  • Macro Enterprises – $MCR.v
    • Gate City bought another 2.7% of the company
      • Now owns 15.3% of the outstanding

Feel free to reach out.

Dean

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June 2021 Update – $CSW/A.to, $OSS.v, $PSD.to, $IDG.to, $STC.v, $MCB.to, $MTLO.v, $SVT, $FXC.to, $URB/A.to

Happy Canada Day to my fella Canadians and Happy Independence Day to my friends south of the border.

TIKR

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

https://app.tikr.com/register?ref=smob7c

Thoughts on Market Activity

Really nothing new to report here. There is a still a debate on whether or not the spike is transitory or not. I don’t know. That’s it. Most commodities have rolled over to some degree, except oil and nat gas which have been strong. It will be interesting to see how long or to what degree we reopen if there is still 25-30% of adults with vaccine hesitancy.

Looking at my portfolio at the moment… I am looking to reduce the amount of companies I hold. I have too many small positions that are somewhat distracting given how much they will move the needle.

What I’m Reading

Deep Work by Cal Newport

I really enjoyed this book and have been trying a few suggestions from the book. I have been scheduling my day in 30 min blocks that consist of either shallow and deep work. I have also removed much of my presence from social media. At least, I don’t check my Twitter timeline, but I will continue to utilize and check my DMs. I’ll give it a try for a month or so and see how it goes.

I also like to read books on parenting and relationships. Message me if you’re interested.

Posts this month

Developments on Companies Mentioned

  • Corby Spirit and Wine Limited – $CSW/A.to & $CSW/B.to
    • Lawsuit filed against them
      • Lawsuit filed on black discoloration near the warehouse
      • They stopped managing the warehouse june 30, 2020
  • OneSoft Solutions – $OSS.v
    • New teaming agreement
      • First from Worley via Advisian
      • First in Australia
      • Began trials in March 2020
      • I found this interesting from the PR
        • Hossein Khalilpasha, Advisian Principal Integrity Engineer and Asset Integrity Lead stated, “The case studies we performed demonstrated that our analysis of clients’ data using CIM with machine learning is not only more accurate, much faster and less costly for clients, but also provides state-of-the-art 3D visualization of pipeline data that empowers engineers to surface and contextualize pipeline conditions and threats that legacy integrity management systems and processes used today do not rival.”
  • Pulse Seismic – $PSD.to
    • Burgundy has been selling shares
      • Sold 360k shares
      • Still own 5.2 mil shares or 9.7%
  • Indigo Books & Music – $IDG.to
    • Reported annual results
      • Really hard to judge the business given the lockdowns in place throughout the year
    • CEO bought about 440k worth of stock at these prices
    • Though the business has proved resilient, the business does not attract me at these prices and I will not be updating it moving forward.
  • Sangoma Technologies Corp – $STC.v
    • CEO made a couple of small purchases during the sell off
  • McCoy Global – $MCB.to
    • Announced the formation of a special committee after AGM
      • I view this as positive
      • I think if they shopped this investor deck around outside O&G and an existing business they would have gotten a substantially higher valuation
  • Martello Technologies Group Inc – $MTLO.v
    • Reported fiscal Q4 2021
      • Market didn’t like it
      • Hit by fx
      • Rev up yoy with GSX acquisition
      • Adj ebitda worse yoy
      • Sounds like they have lots of promise in the future
      • Still monitoring
  • Servotronics – $SVT
    • Lawsuit filed against the CEO and the Ontario Knife Company
      • CEO has been placed on administrative leave
      • Gotta love microcaps
  • FAX Capital – $FXC.to
    • Announced the renewal of NCIB
      • Up to 1.5 mil shares or 10%
      • Daily limit of 14,758 shares
    • Investment in BioSyent
      • They own just over 2mil shares or 16.69% of the common
  • Urbana Corp – $URB/A.to

Hope everyone is having a wonderful summer and gets vaccinated.

Dean

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April 2021 Update – $OSS.v, $REPH, $ISDR, $PSD.to, $ISV.to, $FTG.to, $XTC.to, $RELL, $MTLO.v, $DWSN, $SVT, $URB/A.to

TIKR

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

https://app.tikr.com/register?ref=smob7c

Thoughts on Market Activity

This month seen a bounce in the markets to some degree. Hearing more and more mention of inflation on conference calls from companies and some larger companies have implemented cost increases due to rising input costs. I am not a macro guy but thinking about how a business will perform with higher input costs feels more prudent than ever. There seems to be a big disconnect on what I hear on Twitter vs. how the indexes are performing. I do consistently hear “it’s a tough market for microcaps” and “these aren’t getting the attention they deserve”. It seems to be a story of what worked in 2020 isn’t working in 2021. Is it a temporary phenomenon or something longer lasting I’m not sure.

On a personal note, my portfolio has been treading water for a few months. Keeping up with the Russel YTD will have to be good enough. I have been deploying into more and more smaller bets as some companies have reached large portions of the portfolio and not sure if the valuations warrant very large positions. This will make it harder to substantially outperform by a wide margin but could lead to less volatility. Also, I’m expecting that the churn in positions will lead me to underperform in the short term.

Posts this month

Developments on Companies Mentioned

  • OneSoft Solutions – $OSS.v
    • Announced another client
      • Nice to see some continued traction
  • Recro Pharma – $REPH
  • Issuer Direct – $ISDR
    • Announced a 1% pledge
      • I like the concept and how ISDR is an entity that gives back to the community
  • Pulse Seismic – $PSD.to
    • Reported Q1 2021 and held AGM
      • 3.8 mil in sales in April
      • They have now booked 77% of the entire year of 2020 rev (although depressed) in the first 4 months
      • I have tried hard to purchase additional shares, but the share price has run away from me
  • Information Services Corp – $ISV.to
    • Filed a shelf prospectus to raise up to 200mil over the next 25 months
      • Interesting development and something to monitor
  • Firan Technology – $FTG.to
    • Reported fiscal Q1 2021
      • Results were impacted by covid from a demand and operational standpoint
      • Trading quite cheap based on trailing numbers with some uncertainty with commercial aerospace returning
  • Exco Technologies – $XTC.to
    • Reported fiscal Q2
      • Results were above my expectations and outlook given was strong
  • Richardson Electronics – $RELL
    • Reported Fiscal Q3
      • Things are looking positive
      • Trading at about NCAV
  • Martello Technologies Group Inc – $MTLO.v
  • Dawson Geophysical – $DWSN
    • Adopted a shareholder rights plan
      • Expires in 2022
      • Not a fan
  • Servotronics – $SVT
    • Released 10-K
      • Not a ton of details that we don’t already know
      • Revs down 10% in 2020
        • ATG down 16% as they are tied to commercial aviation
      • CPG up 34% as they shipped more units
    • Still interesting to follow
  • Urbana Corp – $URB/A.to
    • NAV is slowly creeping up

The author is long $OSS.v, $ISDR, $PSD.to, $URB/A.to

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