November 2021 Update - $CSW/B.to, $OSS.v, $REPH, $ISDR, $ISV.to, $STC.to, $VLN.to, $VMD.to & $VMD, $SYZ.to, $MCB.to, $FRii.to, $FXC.to, $PZA.to, $MCR.v, $KUT.v
TIKR
I use TIKR to quickly look through ideas and check comparable companies. Would recommend. Referral code below.
https://app.tikr.com/register?ref=smob7c
Thoughts on Market Activity
The market has reacted to the news of another variant that seems to spread quicker than Delta. Governments around the world have reacted quickly by imposing some requirements for traveling to the affected zones (at least those currently affected). It will be interesting to see how effective the current vaccines are against this variant and if the mandatory vaccination movement gains more or less traction. Of course, I have no idea and haven’t changed by portfolio.
My portfolio has underperformed the market this year. It is hard to determine how much has been poor decisions vs. some returns being pulled forward in 2020.
I have been on the lookout for tax loss selling opportunities.
What I’m Reading
What The Dog Saw: And Other Adventures by Malcolm Gladwell
Posts this month
None
Developments on Companies Mentioned
Corby Spirit and Wine Limited - $CSW/A.to & $CSW/B.to
Reported fiscal Q1 2022
Revenue down 4-5% vs last year
Covid is making yoy comparisons hard
Cash balance down from the upfront fee to represent Pernod Ricard brands in Canada
Shares seem to have an equal upside vs downside at the moment and I’m going to stop updating CSW.
I do think the company represents a decent bet in an income portfolio.
OneSoft Solutions - $OSS.v
Reported Q3 2021
Rev growth was better than I expected
I was expecting slightly less cash burn by this stage although they are getting closer to break even and seem to have enough cash to get there
They are continuing to add customers (up to approx. 20)
Outlook seemed positive
Still expensive price to sales so will need high growth to justify committing capital to this company
Recro Pharma - $REPH
Reported Q3 2021
Was weaker than expected
I’m watching from the sidelines but won’t follow as closely as prior
I am going to stop updating REPH here
Issuer Direct - $ISDR
Reported Q3 2021
In line with my expectations
I’m hoping they can outgrow any significant margin pressure from here on in
Information Services Corp - $ISV.to
Reported Q3 2021
Quarter was pretty good
They benefited from Sask real estate
Likely wont’ see the same growth in 2022
Subsidies ending in Q4 2021 could bring some opportunity for Paragon
Sangoma Technologies Corp - $STC.v
7 for 1 share consolidation announced
Reported fiscal Q1 2022
Slightly stronger than expected and guidance was maintained
IPO in the US
Issuing 5.5 mil shares
Then pulled the share issuance - ???
Velan - $VLN.to
Formalized the appointment of Bruno Carbonaro as CEO as they announced previously
Viemed - $VMD.to
Reported Q3 2021
Seemed like a decent quarter
Rev came in at the top end of guidance
Guiding to a bit lower growth in Q4 from the core biz relative to Q3
Margins slowly coming back
Looking to get back to traditional growth rates in 2022
Lots of uncertainty
Sylogist - $SYZ.to
Announced 5.9mil in contracted revenue
Good to see some wins
McCoy Global - $MCB.to
Reported Q3 2021
Was better than I was expecting
Backlog is up and outlook is positive from here
Freshii - $FRII.to
Announced a new franchise deal in Texas
20 units over 6 years
Reported Q3 2021
Was weaker than I expected – particularly gross margin
Urban locations still significantly affect by covid
Not expecting a significant cash burn from Natura
Continued to invest in franchise partners during the quarter
Long term see lots of opportunity in Canada
FAX Capital - $FXC.to
Reported Q3 2021
Deployed some capital into Hamilton Thorne during the quarter
Accumulating shares in another public Canadian company
Purchased 2 mil shares of Avante Logixx
I have liquidated my position and will no longer be updating $FXC.to
Pizza Pizza Royalty Corp - $PZA.to
Nice bounce in activity with some more mobility in Canada
Still some stores shut down and yet to reopen so I don’t think we are not at peak earnings
Macro Enterprises - $MCR.v
Reported Q3 2021
Results were in line with my expectations
Revenue was 110 mil vs 94 mil last year
Expects revenue to exceed 385 mil for 2021
Trading about 2.5 EV/EBITDA and likely less than 2x EV/EBITDA if they maintain 350+ in rev
RediShred Capital - $KUT.v
Reported Q3 2021
Results were better than my expectations
EBITDA grew 53% from acquisitions and organic growth
Trading at 10x EV/FCF given my run rate estimate with stable paper prices
Long - $OSS.v, $ISDR, $$STC.to, $VLN.to, $VMD.to & $VMD, $MCB.to, $FRii.to, $MCR.v, $KUT.v