Aug 2021 Update - $CSW/B.to, $OSS.v, $REPH, $ISDR, $ISV.to, $STC.v, $VMD.to, $SYZ.to, $MCB.to, $FRII.to, $MTLO.v, $SVT, $FXC.to, $PZA.to, $URB/A.to, $MCR.v, $KUT.v

TIKR

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

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Thoughts on Market Activity

Nothing constructive.

What I’m Reading

I have been reading the book Scarcity. I am enjoying it. Coming from a place of privilege it frames decisions made by those who may have a harder path than my own.

Posts this month

• KUT post

Developments on Companies Mentioned

• Corby Spirit and Wine Limited - $CSW/A.to & $CSW/B.to

  • Reported fiscal Q4 2021

    • Q was in line with expectations

    • Compression in margins for the quarter due to higher opex

• OneSoft Solutions - $OSS.v

  • Reported Q2 2021

    • Not much has changed

    • Rev was up with an easy comp

    • Still waiting on some significant news with new customers  signing

• Recro Pharma - $REPH

  • Reported Q2 2021

    • Showing gradual improvement in operations

      • Verapamil seems to have stabilized

      • Some initiatives underway on business development and clinical trial services

    • Reaffirmed guidance of 68-72 mil and 15-17 mil adj ebitda

  • Purchase of IRISYS

    • 50 mil total

      • Half in cash

      • 6.1 debt

      • Remaining in 9.3mil shares

    • Interesting addition, but comes with dilution

      • Not sure if the ebitda and revenue guidance included this purchase

    • They will provide a more comprehensive update on the Q3 call

  • I’m continuing to monitor

• Issuer Direct - $ISDR

  • Good q

    • Decent top line growth

    • Private market customer growth up 50%

    • Margins at high end of range

      • Sounds like they are sustainable from this level

    • Looking to continue to invest in products to drive ARPU higher

• Information Services Corp - $ISV.to

  • Reported Q2 2021

    • Rev up 44% from low base last year and Paragon acquisition

    • Real estate activity in sask is really helping

    • Some delays due to governments focused on covid and economy

    • Paragon likely sees a gradual increase in activity when subsidies are wound down late in the year

• Sangoma Technologies Corp - $STC.v

  • Announced timing of an Annual and Special shareholder meeting to approve a share consolidation and (eventual) US lisitng

• Viemed - $VMD.to

  • Reported Q2

    • Rev growth and patient growth returning but not to pre-pandemic levels

      • Expect more growth in H2

    • The company is working to train their sales reps to better support patients with remote monitoring

    • They are also getting prepared in case there is another wave of lockdowns and their sales reps will have a harder time reaching physicians in hospitals

    • Covid related revenue is winding down as expected

    • No material update from OIG findings

    • Guidance was for about 10% yoy core biz growth

• Sylogist - $SYZ.to

  • Reported fiscal Q3 2021

    • Below my expectations

    • Going to keep an eye on it

      • Currently yields 4.6%

• McCoy Global - $MCB.to

  • Reported Q2 2021

    • Rev was weaker than expected

    • They had a delay in recognizing an order which made the top line look worse

    • They have had strong orders for the first month of the quarter

    • MCB has been a company that sees activity recover later than many other service companies so not surprising we aren’t seeing strong top line growth

    • They continue to invest in their digital roadmap

    • PPP loan was forgiven

• Freshii - $FRII.to

  • Reported Q2 2021

    • The majority of the quarter had heavy lockdowns so the quarter is not a good one to measure the business although provides some insight into what mgmt. think of the business

    • They are trialing some new things like energy bites

    • They are driving more revenue from dinner

    • They committed to investing in supporting franchise partners with another 1mil

    • Still have lots of cash – waiting to see what they do with this

    • I am holding and will wait for the company to demonstrate it’s ability to execute during a more normal environment

• Martello Technologies Group Inc - $MTLO.v

  • Reported fiscal Q1 2022

    • Was weaker than I expected

    • Expenses increased quicker than I expected

    • Hurt by higher $CAD

    • The conference call did have some positive things to say

  • I have been following for a couple of quarters since I sold shares, so far it was a good decision

  • I’m going to stop updating MTLO here, but keep an eye on it offline

• Servotronics - $SVT

  • I’m no longer following this closely – I won’t do a deep dive unless it trades at a discount to NCAV

• FAX Capital - $FXC.to

  • Reported Q2

    • Book value at the end of Q2 is $5.45 per share which is up nicely

    • Still have over 80mil in cash to deploy

• Pizza Pizza Royalty Corp - $PZA.to

  • Reported q2 2021

    • Still plugging along

    • Increased the distribution by 9%

    • Increased store count by 5

• Urbana Corp - $URB/A.to

  • Reported Q2 2021

    • Still trades at large discount to NAV

  • Announced purchase of additional shares of CNSX

• Macro Enterprises - $MCR.v

  • Reported Q2 2021

    • Better than I expected

    • Gave guidance to near 300mil in revenue in 2021

      • Was 250mil

    • Was carrying an extra 20mil in receivables at the end of the quarter that they received after the quarter ended

  • Continuing to hold

• RediShred Capital - $KUT.v

  • Reported Q2 2021

    • Was a good q and ahead of my expectations

    • Lots of positive comment on the call

    • Acquisition pipeline strong

Long $OSS.v, $ISDR, $STC.v, $VMD.to, $MCB.to, $FRII.to, $FXC.to, $URB/A.to, $MCR.v, $KUT.v