April 2021 Update - $OSS.v, $REPH, $ISDR, $PSD.to, $ISV.to, $FTG.to, $XTC.to, $RELL, $MTLO.v, $DWSN, $SVT, $URB/A.to
TIKR
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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
Technology sharing agreement with C-FER
Interesting development – sounds like this was customer requested and (hopefully) leads to more customers trialing CIM
Recro Pharma - $REPH
Expands development and manufacturing relationship with Ensysce Biosciences
Still monitoring the company
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