April 2023 Update - $FTG.to, $XTC.to, $VMD.to & $VMD, $MCB.to, $KUT.v, $QST.v

I’ve decided to give Substack Notes some dedicated effort in May. I’m hoping to keep the integrity of my feed higher with less maintenance. Twitter has become a mix of sourcing ideas and entertainment. I’ve definitely fallen victim to spending too much time on the bird app without getting much in return. The DMs are where I have seen the most value by a mile.

Thoughts on Market Activity

I know I rarely put anything here. I don’t really have much to add. The top 5-10 companies are leading the market direction at this point. The market is pricing in rate cuts (IMO) that I am not sure will materialize as fast as expected. As with any period of uncertain economic times, there are mixed signals with employment and inflation. Layer on the war, post covid ripples, some bank failures, etc and who knows what happens.

What I’m Reading

As I am going to take a stab at using Notes in Substack, I am also going to spend some more dedicated time using the app. I will be “liking” the posts I find interesting and mentioning them in my notes feed.

I finished Quit by Annie Duke. I have decided to make a post on it as there were several takeaways for me.

I have been reading The Comfort Crisis by Michael Easter after hearing it recommended on the Peter Attia podcast. The book is interesting and I like the authors perspective.

Other News

I have decided to make these update posts monthly. This will mean they will be more thorough rather than quick and dirty. I think this will allow me to synthesize my thoughts better.

Company Updates    

Planet Microcap replays

Recently the Planet Microcap Showcase took place in Vegas. Many interesting companies presented and there is even a reply of the presentations here. I have yet to get through all of them that I am interested in.

Firan Technology - $FTG.to

Firan reported very strong Q1 2023 results with the help of some recognized government assistance. Even without the assistance, the results were ahead of my expectations. They seem to have hit their stride after the touch-and-go period during covid.

Based on the rough guidance from the CEO, shares trade less than 3x EV/run rate EBITDA. The share price has performed strong YTD (+30%). I would be adding on weakness.

Viemed - $VMD.to

Viemed announced an acquisition after they had spent much time searching for the proper fit. At first glance it seems like a good fit into the organization and the valuation (less than 5x ebitda) seems more than reasonable if there is any cross selling opportunities.

Shares have performed well YTD (+40%) but seem to be quite volatile in the last couple of weeks. VMD is a pretty topical with the reimbursement risk. I have been lightening up my position opportunistically as it has become too large for my comfort. They are trading at a hair over 10x ebitda.

McCoy Global - $MCB.to

The CEO (Jim Rakievich) was recently interviewed by SCD. He goes over some of the opportunity that MCB has in front of them. They also announced some new orders for the Flush Mount Spiders that were commercialized last year. This is part of their technology roadmap and nice to see the win.

MCB still has quite a bit of cash and the backlog looks strong. I would not be surprised if they are taken out this cycle if their recent investment in technology fains traction.

RediShred Capital - $KUT.v

KUT reported Q4 2022. The results were ahead of my expectations and demonstrated the operating leverage in the business with strong paper prices. The market seems to be concerned with paper prices falling alongside other commodities. Though I don’t know where prices will end up, I feel that the business is well positioned for the future.

Shares are essentially flat over the last year and up only about 30% over the last 5 yr. The per share numbers have grown nicely over this timeframe. I continue to like the bet here.

Exco Technologies

They reported fiscal Q2 2023 and results were ahead of my expectations. The company has been focusing on growth with a targeted deployment of capital up to 2026. It remains to be seen if they can find a home for the money, but in the meantime the stock yields 5.7%.

Questor Technologies - $QST.v

They reported Q4 2022 and results are what they are. I am looking at overall capital spend on fracking primarily as the cycle continues. The thesis is intact, but not betting the farm here.

Thanks for reading if you made it this far. Feel free to leave a comment or share with others.

Long - $VMD.to & $VMD, MCB 0.00%↑ .to, $KUT.v, $QST.v