May 2022 Update - $OSS.v, $ISDR, $ISV.to, $STC.to & $SANG, $VMD.to & $VMD, $SYZ.to, $MCB.to, $PZA.to, $KUT.v, $CPH.to, $GEO.to, $CMG.to, $MRV.to
Thoughts on Market Activity
Not really a market thought specifically, but I’ve been thinking about the appeal of negativity. It’s interesting to hear the macro calls and recession talk. Lots of pessimism from my Twitter feed these days. I don’t really know what will happen next quarter or next year, but at some point inflation will be under control and optimism will be in favor again. The macro data points will look the worse and the market will rally and many will call it a head fake. If this is your first big correction, welcome to the club. These battle scars are earned.
I have been unable to properly filter out enough noise from social media, as such I have taken a social media break (again).
What I’m Reading
I’ve been doing my best to keep a level head in the drawdown and thinking long term. Not trying to overhaul my process and spend too much time looking backwards. I can’t expect myself to perform elite level thinking during a crisis. I have been reviewing my processes and looking deeper into the businesses I own to ensure that I properly understand the set-up.
I found the posts (here and here) by Aswath Damodaran on inflation worth reading.
This post over at Insecurity Analysis is worth reading. I have been victim of my previous experiences paralyzing me. Getting past my mental rigidity is a challenge at times and requires constant work.
Podcasts I Enjoyed Over the Last Month
I found the conversation during this podcast on This Week in Intelligent Investing regarding post covid growth interesting. Framing the post covid growth in tech companies in this manner is a good mental exercise.
You can access the RGA letter referenced in the conversation here
Posts this month
Company Updates
OneSoft Solutions - $OSS.v
new post on their blog regarding another module being released (corrosion management)
released Q1 2022
recurring revenue continues to grow as does expenses
they have a bunch in receivables and expect to collect most of them in Q2 2022, so I’m going to continue to wait
Issuer Direct - $ISDR
reported Q1 2022
was about what I was expecting
yoy revenue growth but down sequentially
investing in the platform and some lumpiness in customer use of their products
Information Services Corp - $ISV.to
reported a strong Q1 2022
they expect the business to be a bit more muted after a strong 2021
under 10x EV/EBIT seems like it would be a decent place to build a position
Sangoma Technologies Corp - $STC.to
reported fiscal Q3 2022
results were a bit ahead of my expectations
they had all the costs of the acquisition of NetFortis in the quarter but very little revenue
Viemed - $VMD.to
reported Q1 2022
strong revenue growth and strong guidance
see this post for a more thorough update
update on the OIG investigation
positive to see that 77% were medically necessary
should lower the overall potential liability
Sylogist - $SYZ.to
reported fiscal Q2 2022
results bounced back a bit from the last quarter
I have stopped following SYZ closely due to limited time and additional opportunities. I won’t be updating SYZ regularly.
McCoy Global - $MCB.to
reported Q1 2022
results were in line with what I was expecting
the company is seen a large increase in orders during and the resulting backlog is back to the highest level since the pandemic
as well they have made some more progress on the digital technology roadmap
Pizza Pizza Royalty Corp - $PZA.to
reported Q1 2022
pretty much as expected
strong SSS growth from an easy comp last year
seeing input and labour costs up and finding ways to manage it
still some catch-up on the total location count
RediShred Capital - $KUT.v
Proposed a 5:1 share consolidation at the AGM and was passed
exact timing to be announced
reported Q1 2022
very strong across the board even excluding strong paper prices
firing on all cylinders
Cipher Pharmaceuticals - $CPH.to
reported Q1 2022
results were in line with my expectations
lots of cash and continuing to buyback shares
Geodrill - $GEO.to
reported q1 2022
pretty strong results as expected
outlook was positive
I would like to see operating margins increase from here given the increase in activity
Computer Modelling Group - $CMG.to
reported fiscal Q3 2022
results were pretty much inline with expectations
I have sold my shares and I working on rolling the capital into another company that I think will benefit more from the increase in oil and gas activity
Miravo Pharmaceuticals - $MRV.to
Announced that the FDA has approved a new drug application for the generic version of Pennsaid 2%
Pennsaid was 13% of revenue in 2021 so this is obviously not good news
reported Q1 2022
these were below my expectations on an adjusted ebitda basis
guidance for the commercial business for the rest of the year was strong
I’m still processing whether to add, sit on my hands or sell for other opportunities
Long - $OSS.v, $ISDR, $PSD.to, $STC.to, $VMD.to & $VMD, $MCB.to, $KUT.v, $CPH.to, $GEO.to, $MRV.to