Mid Nov 2022 Update - $OSS.v, $ISDR, $PSD.to, $STC.to & $SANG, $VMD.to & $VMD, $MCB.to, $KUT.v, $CPH.to, $GEO.to
Thoughts on Market Activity
As usual… nothing productive from me on this front. I took my summer vacation late and spent the last 5 days in San Diego. I’m way behind on earnings releases and looking to but my head down and get caught up. I thought it was better to put something that wasn’t 100% completed rather than wait another two weeks until the end of the month.
What I’m Reading
Earnings, Cash Flows and Free Cash Flows: A Primer over at Musings on Markets.
As usual, very informative and detailed.
Meta Lessons on Musings on Markets. 1 on Governance. 2 on Accounting Inconsistencies and Consequences.
I have no opinion on Meta but find it interesting to watch from the sidelines. For some reason I enjoy watching when the valuations in tech/software cos are compared to KO or PG. I think many are still discovering that the market doesn’t like uncertainty and will discount things heavily. Live long enough and everything trades at 15x earnings (or less).
Podcasts I Enjoyed
Home Depot on Business Breakdowns.
I did not appreciate the emphasis on capital allocation from Home Depot over the last 20 years. Worth a listen.
Bill Brewster hosted Mark Newfield on his podcast.
I always like the candidness on this podcast. I find anything related to neurodiversity interesting as the characteristics are usually viewed as negative but often can be the opposite.
Company Updates
OneSoft Solutions - $OSS.v
looks like they released earnings last night
revenue ahead of my expectations
I have to dig into this one some more before judging
Issuer Direct - ISDR 0.00%↑
reported Q3 2022
the business did a little poorer than I expected
they also announced the acquisition of iNewsWire.com
I’m still digesting the news at the moment and I need to better understand what this looks like in a few years for this business
Pulse Seismic - $PSD.to
I expect them to execute on what they can although they are limited due to the illiquidity of the shares
Sangoma Technologies Corp - $STC.to
reported fiscal Q1 2023
the business performance was under my expectations although guidance was reaffirmed which was something I wasn’t sure they would do only 1 quarter into the year
I need to review the call notes again before deciding if this warrants anymore action
Viemed - $VMD.to
reported Q3 2022
guided for about 30% yoy growth
ebitda margins look to have bottomed
McCoy Global - $MCB.to
reported Q3 2022
not much to add
backlog is very high
EV/EBITDA around 5x ttm and less looking ahead
made some continued progress on their digital road map
RediShred Capital - $KUT.v
announced another acquisition
Proshred franchise in Philidelphia
valuations (pro forma) are in line with prior franchise acquisitions
6-8x EBITDA
Cipher Pharmaceuticals - $CPH.to
reported Q3 2022
nothing material to report, they keep executing
buybacks may slow which is a disappointment
from MD&A “A new automatic purchase plan was not entered into in respect of the current NCIB. Outside of those blackout periods, common shares may be purchased in accordance with management's discretion.”
looking at M&A opportunities
News from Canfite regarding Piclidenoson
In September 2022, the Company's partner, Canfite Biopharma, ("Canfite") announced information related to its phase III COMFORT study of Piclidenoson used in the treatment of moderate to severe psoriasis met its primary endpoint of superiority and achieved a better tolerability profile in a comparative analysis. An estimated 1 million Canadians suffer from psoriasis and Cipher holds the Canadian marketing rights to this novel product, which the Company believes holds substantial commercial potential.
Geodrill - $GEO.to
reported Q3 2022
results were ahead of my expectations
outlook is positive
trading around 4x FCF, less if you remove the cash
I added a wee bit here
Long - $OSS.v, $ISDR, $PSD.to, $STC.to & $SANG, $VMD.to & $VMD, $SYZ.to, $MCB.to, $KUT.v, $CPH.to, $GEO.to