December 2020 Update - $REPH, $PSD.to, $STC.v, XTC.to, $VMD.to, $SYZ.to, $MTLO.v

No new profiles this month. It's been busy with holidays and Alberta has gone into a second lockdown.

• Recro Pharma ($REPH)

  • New CEO announced (finally)

    • Has a decent pedigree and looks promising

    • The shares have been running a bit, not sure exactly why at the moment

  • George McCabe (Portolan Capital Management) disclosed a 5.47% position in REPH

    • A quick google search shows that they own many positions and that REPH makes up 0.47% of their portfolio. Not exactly meaningful.

• Pulse Seismic ($PSD.to)

  • Announced a 3.05 mil data licensing sale

    • That is more revenue from the previous 3 quarters

    • Q4 revs at 5mil

    • 2020 revs at 10.9mil

  • Some language in the news release about debt repayment and extension of the credit agreement

  • I think the story has been de-risked to some degree and shares have not really rebounded, but alas this is energy related

• Sangoma Technologies Corp ($STC.v)

  • Had a data breach during the month of December

  • an update was provided before the end of the month; some highlights

    • no customer bank information was compromised

    • products aren’t affected

    • CEO took responsibility

    • maintaining transparency

• Exco Technologies ($XTC.to)

  • Reported fiscal Q4 2020

    • Quarter was better than I expected

      • Auto segment bounced back

      • Aided by wage subsidy

    • Bullish comments about the future on the conference call

  • I am expecting the dividend to be increased next year

  • This goes to show that it is so hard to predict how covid will affect these businesses

    • This team has adapted really well to the new environment

• Viemed ($VMD.to)

  • Acquired 5% in VeruStat for 600k with cash on hand

    • Sounds like it will be accretive in 2021 and seems like a nice new revenue stream

    • It’s nice to see that they are looking at alternative ways to grow the business other than just adding vent patients

  • Shares didn’t really respond to the news

• Sylogist ($SYZ.to)

  • Reported fiscal Q4 2020

    • Rev up 10% year over year

    • Margins up as well if you remove acquisition related costs and executive bonuses (it’s up to you if you feel that is fair)

    • Still waiting on some activity on the acquisition front

    • Have $43 mil cash plus access to $40 mil credit line

  • These developments are positive. I will be watching this one closely.

• Martello Technologies Group Inc ($MTLO.v)

  • Announced some sales wins

    • $375k in bookings

    • 120k in users

    • Over the next 12-36 months

Happy and prosperous investing in 2021!