End of Nov 2022 - $OSS.v, $STC.to & $SANG, $FTG.to, $XTC.to, $VMD.to & $VMD, $KUT.v, $HWO.to

Thoughts on Market Activity

I don’t know anything about SBF.

What I’m Reading

I’ve been reading How To Stop Worrying & Start Living but Dale Carnegie. I like the book and think it’s worth reading if you need some ideas if you find yourself worrying in an unproductive way.

• Lesson 3 on Facebook (META) over at Musings on Markets.

  Focusing on the story and change in the story. I can’t help but think of some of the story behind the “disruptors” that had little to no numbers behind them.

• Watchlist Investing has a post on how to learn accounting.

  Great resource if you are getting started or need a refresh.

• Investment Talk has 10 lectures rediscovered by Ben Graham.

  I’ve only gotten through a few of them, but definitely something to bookmark and read later.

Posts

Total Energy Services

Company Updates    

• OneSoft Solutions - $OSS.v

  • took a closer look at Q3 2022

    • revenue increase of 69% (35% without the recent acquisition)

    • outlook seems strong as well with some wins announced after the quarter ended

    • inching closer to break even

      • looks like they have several years of cash on the balance sheet to finance growth before needing capital based on some reasonable assumptions

    • I still think OSS gets taken out by a larger player at some point

• Sangoma Technologies Corp - $STC.to

  • took another look after they released fiscal Q1 2023

    • was weaker than I expected

      • almost all weakness on the product side

      • services side was fine

    • guidance was maintained although tone on the call was a little muted

    • looks pretty cheap although there is lots of selling pressure on this one

• Firan Technology - $FTG.to

  • announced the acquisition of IMI

    • cash consideration of approx 2mil CAD

    • revenue of 4.5mil

    • no disclosure of profitability

    • FTG still has lots of cash to continue acquisitions

• Exco Technologies - $XTC.to

  • reported fiscal Q4 2022

    • given all the challenges the results were ahead of my expectations

    • they continue to invest heavily in the business

    • currently yielding 5%

    • if they raise the dividend in 2023 I expect it to be small

• Viemed - $VMD.to

  • announced a new credit facility

    • maybe they are close to closing on a acquisition

• RediShred Capital - $KUT.v

  • reported Q3 2022

    • top line was ahead of my expectations

    • margins were hit by a few things

      • I was expecting margins to feel some pressure (mainly due to fuel) but they were affected more than I anticipated due to labour and supply chain issues for their vehicles

    • they have managed to implement a price increase in Q3 that should support margins going forward

      • as well the supply chain issues look to have peaked

• High Arctic Energy Services - $HWO.to

  • reported Q3 2022

    • nothing really to update

    • slight delay in getting the contracted rig (103) up and running

    • 2023 will see a company focused on PNG and hopefully we see other rigs contracted

Long - $OSS.v, $STC.to & $SANG, $XTC.to, $VMD.to & $VMD, $KUT.v, $HWO.to

Thanks,

Dean