FormerXBC Inc XEBEQ

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Xebec Adsorption Inc designs, engineers, and manufactures products that are used for purification, separation, dehydration, and filtration equipment for gases and compressed air. The company operates in three reportable segments: Systems, Corporate and other, and Support. Its product lines are natural gas dryers for natural gas refueling stations, compressed gas filtration, biogas purification, associated gas, engineering services, and air dryers. The company's geographical segments are United States, Canada, China, Other, Korea, Italy, and France.

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FormerXBC Inc > sometimes the market is hard to figure out

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Comment by WealthBuilder99on Jun 12, 2021 7:59pm

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RE:RE:RE:sometimes the market is hard to figure out

I'm just pointing out, Cielo is developing what could be a game changing technology, I think comparing to its operating margin is irrelevant. Whether it's valuation is warranted remains to be seen. If it fails to deliver its valuation could collapse like Xebecs did from its former highs.

When it came for Xebec to deliver, it's results were disappointing and I think it became apparent the business is perhaps not as lucrative as it was initially conceived - this could change mind you. Again, I'd like to see stronger margins emerge, 3-4% Ebitda is too low for my liking.

Anyways, I appreciate any good info you take the time to share here Tam. I'm out for now but still follow should it become attractive to re-enter.

Cheers

tamaracktop wrote:

WealthBuilder99 wrote:
Comparing apples to oranges here. Cielo is a pre-revenue company. Meanwhile Xebec has had major operational blunders. They are growing their revenue well but margins are very low. Forecast was for 3-4% Ebitda margins for 2021 if I recall. I know these should improve going forward but still very disappointing. Dumped all my Xebec to harvest capital losses but may re-enter in time if the business improves.

Cheers

tamaracktop wrote: Xebec has trailing revenues of $64.95 million and is capitalized at $658 million.
Cielo has 9 month trailing revenues of four thousand two hundred dollars and is capitalized at $594 million.
Maybe it's because Cielo's operating profit margin is -98,397%.
That's not a typo. It's minus 98 thousand three hundred and ninety-seven percent.
It's facts like this that contribute to my insomnia.
I think.

Okay then. Now I understand.
Cielo is a "pre-revenue" company.
That explains everything!

Can you please tell me what Ballard and Plug and FuelCell's operating margins are?
Please. Enlighten me.
The're negative. Very very negative.
They always have been.

I'll concede that harvesting capital losses will likely prove to have been a good strategy in your case.
30 day superficial loss provisions aren't going to hurt you.
I doubt you'll be gone for long.