GREY:XEBEQ - Post by User
Comment by
newdanton Jun 06, 2019 1:59pm
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Post# 29803294
RE:My Worry List
RE:My Worry ListSome legit concerns that I don't have the answer to (political risks). For China I expect that they can easily reverse engineer Xebec's technology and I see that as a real risk.
There have been many RNG project announcments of late but there have been no corresponding announcments confirming that Xebec has been selected as the technology supplier to these many RNG initiatives now underway. If XBC had won the business it would be in the press.
I think its a good company with a bright future but only if they and execute on two things. First - grow the backlog. Here is a Sedar excerpt from their Q1 2019 -
• Order bookings increased from $66.1 million as of May 28, 2018, to $71.9 million, representing an 5.8 % increase. (Note: $45.0 million to be delivered over two years)
Given the explosion of RNG projects a 5.8% growth in backlog is quite poor. This needs to improve substantially.
The other key for me is renewalable revenue, so I'd like to see at least 1 or 2 of these projects up and running and delivering performance as expected.
Potentially a good growth company but I think the stock price is ahead of itself, especially given the huge run up its had since last fall.
I will wait things out for another few quarters and see how they do on the 2 points I mentioned above.