Feb 2022 Update - $PSD.to, $ISV.to, $STC.to / $SANG, $FTG.to, $XTC.to, $SYZ.to, $PZA.to, $MCR.to, $GEO.to
Thoughts on Market Activity
Another eventful month. Feb continued to be rough on many of the prior winners. Inflation talk has taken a back seat to the Russia/Ukraine war. Since I have nothing valuable to add, I’ll leave it there.
What I’m Reading
Nothing new. Caught covid this month so spent more time keeping up and recovering that I do typically.
Podcasts I Enjoyed Over the Last Month
I’ve decided I would share some of the podcasts I found valuable during the month. Feel free to send me your favorites.
This Week in Intelligent Investing - SPECIAL: Spencer Jakab on The Revolution That Wasn’t: GameStop, Reddit, and the Fleecing of Small Investors
I’m looking forward to reading the book. Such a fascinating time.
Mind Reading 2.0: Why did you do that?
Interesting mental exercise in understanding how others may perceive us
Neckar’s conversation with Rob Wetheimer about great industrials
I am a sucker for industrial companies that relentlessly focus on improving
Bill’s conversation with Chris Cerrone
Such a good insight into how Akre thinks and anlaysizes businesses
Invest Like the Best with Frank Slootman
Felt this was a good listen for how to think about making decisions in real time with imperfect information. I found lots of little nuggets if information.
Posts this month
Developments on Companies Mentioned
Pulse Seismic - $PSD.to
Reported Q4 2022
Strong as expected
Now debt free
Expect the majority of revenue to come from transactional deals
Information Services Corp - $ISV.to
Using cash on hand
Neutral to earnings in 2022 with integration costs
Accretive to earnings in 2023
Issued business update and guidance for 2022
Expect registry operations will slow but still exceed pre-pandemic
Services to continue organic growth
expect revenue for 2022 to be between $168.0 million and $173.0 million,
net income to be between $23.0 million and $27.0 million and
EBITD2 to be between $48.0 million and $53.0 million.
Friend of the blog Nelson from Uproar Capital did a post on ISV, go check it out.
Sangoma Technologies Corp - $STC.to
Reported fiscal Q2 2022
Results were quite well
Ahead of guidance and guidance was upped
I think this is a bigger deal than the market is giving them credit for as they are typically quite conservative
Firan Technology - $FTG.to
Results were impacted by covid as expected
I’ve been trying to get a handle on what this business will/can earn in a world without covid
Exco Technologies - $XTC.to
Reported Q1 fiscal 2022
Weaker than I expected due to supply chain, labour challenges with omicron, some mix differences
Still expect the business to perform well over the medium term
Dividend was upped by 5%
Raised 13 of the last 14 years
Also announced NCIB for up to 10% of outstanding
Sylogist - $SYZ.to
Reported fiscal Q1 2022
Results were below my expectations
Sounds like a case of investments leading the returns
I’m still waiting to see what the earning power of the business is with the recent acquisitions
Pizza Pizza Royalty Corp - $PZA.to
Hiked dividend to $0.065 per share from $0.06 per share or to $0.78 from $0.72 per share annually
Macro Enterprises - $MCR.v
Announced a new contract
160 mil in cost plus
Starting Q1 2022 and completed Q3 2023
Management announced a take private at $4/share
Doesn’t look like there is much of a chance of a higher bid given that mgmt. controls the majority if the votes
Geodrill - $GEO.to
Long: $PSD.to, $STC.to, $MCR.to and $GEO.to at time of writing