End of Aug 2022 Update - $OSS.v, $FTG.to, $KUT.v, $CPH.to, $GEO.to, $MRV.to

Me and my kids managed to take a small trip to the Okanagan this last week. We made some wonderful memories together and got through some headaches with air travel. I truly enjoy unplugging and building the attachment with my boys.

Summer is coming to an end and we are getting ready for school again. Meeting teachers and prepping the kids for the schoolyard always gets me to reflect on what school provides and what it doesn’t (or at least what I didn’t get from school). I think of things beyond academics with my boys and what values are core to me that I want to pass on. So far, school has seemed like a place to memorize and regurgitate in a classroom setting. Not to say that is wrong, but I haven’t seen as much I would like in the way of life skills and critical thinking. FWIW, my oldest is going into grade 7 so we are only halfway through grade school and many lessons are yet to be taught. I feel like there is an under emphasis on what I would consider a good member of our society. Being a good friend and partner, active listening, critical thinking, metacognition, managing impulsiveness, digesting feedback, habit building, continuous improvement, and many more are things I feel we don’t spend enough time on. Of course, these are things that we as parents are to provide. All the people that I know personally who are happy and successful across multiple parts of their life are better at holding space for a friend in need than telling me how to solve 13 x 167 without using a calculator. Anyways, enough rambling….

Thoughts on Market Activity

As usual nothing productive here.

What I’m Reading

• Believe In Others by Paul Millerd over at Boundless.

  A good post on how your actions can impact others. The picture of Life Disruptors was interesting and I never thought about the frequency of such events. I was encouraged enough by this post to purchase the book mentioned.

• 8 Investing Lessons from Nelson over at Uproar Capital.

  I think these posts are valuable for new investors as they discover their investing style. I’m thankful Nelson was willing to share his.

• I finished the book The Revolution That Wasn’t: GameStop, Reddit, and the Fleecing of Small Investors. FWIW, I usually only finish 1 book out of 6 or 7 that I start reading. This book I read through and enjoyed it. I forgot much of the detail (or I didn’t pay close attention to events as they were happening) in the early days of 2021. I do remember getting many of my non-finance friends messaging me to ask what I’m doing with Gamestop.

Podcasts I Enjoyed

• Inflation discussion with Cullen Roche on the We Study Billionaires

  Cullen makes a good argument for continued inflation moderation although it likely remains elevated compared to what we have been accustomed to. I look forward to reading his latest paper on portfolio allocation.

• Though I haven’t taken a close look at the company’s financials, I found this a fascinating episode on Roblox. Guy Raz interviews David Baszucki who is one of the co-founders of Roblox.

• Atlas Copco on Business Breakdowns. I had a few interactions with Atlas in a previous life and was always impressed. These successful industrials with unique corporate cultures always fascinate me. I wish I could find these to invest some money in.

Company Updates    

• OneSoft Solutions - $OSS.v

  • announced a contract win from a fortune 50 business

    • I’ve held on longer than I hang onto cars, so I’m happy to see some traction

  • reported Q2 2022

    • in line with what I was expecting

    • launched the Internal Corrosion module late in the quarter

    • post Q2 they completed the IM Operations

      • I’m curious to see the new operating expenses as they intend to keep the employees

      • revenue mentioned in the acquisition news release was mainly consulting revenue so I’m assuming the potential is much higher post integration

• Firan Technology - $FTG.to

  • announced a nice PO for the simulator business

• RediShred Capital - $KUT.v

  • completed the 5:1 share consolidation

  • reported Q2 2022

    • results were a bit stronger than I expected

    • outlook was positive and shares are quite cheap IMO given the inflation protection built into the business

    • the balance sheet is conservatively leveraged looking forward so I expect more M&A from them this year (hopefully)

• Nuvo Pharmaceuticals - $MRV.to

  • reported Q2 2022

    • results were better than I was expecting

    • they commercial business performed well

    • paid the 2.5mil USD on the Deerfield loan

    • looking at alternatives for the production services business

      • they announced that with the generic version of Pennsaid being launched that Horizon is winding down their Pennsaid business and that means the production services will be impacted heavily

      • restructuring charges of 2-2.5 mil and 9-12 month timeframe

      • I’m not sure what the building and equipment is worth but they have PPE of 3.1 mil year ended 2021

        • the majority is listed as equipment

  • they announced a new board member from Red Oak (the largest shareholder)

    • I view this as quite positive

Long - $OSS.v, $KUT.v, $MRV.to

Thanks for reading.

Dean