FormerXBC Inc XEBEQ

relative valuation of XBC and GRN

[Ciao]

GRN has had a spectacular run and in the last 2 trading days it was up 33%.  Some analysts had earlier called for GRN as a “cheaper” alternative to XBC.  It has overshot now and XBC should outpace GRN in the next little while with the recent catalysts. GRN is no longer cheap relative to XBC.

Using closing prices of $8.03 and $2.49 for XBC and GRN respectively, P/S are as follows;

P/S for XBC (using TTM rev. (adding $17M for HyGear, nothing for Inmatec, 153M shares o/s) of $81M)
= $1.23B / $81M = 15.2

P/S for GRN
= $265M / $17M =15.6

When comparing the 2 companies, ie.  management / balance sheet / product offerings / partnerships / quality of assets / conversion rate on quote book / reputation / forward looking revenues, etc. there is no reason now to pick GRN over XBC

[ZouZS3]

Basically, keep GRN if you have some, but if had more funds to invest I'd choose XBC. GRN was way too undervalued it was about 40 cents 6 months ago and today it's not anymore. Guess XBC's SP 6 months from now. Hint: inefficient market, XBC is way too undervalued at this moment

[newcoin]

The price is low but the value is not there. GRN has had an unbelievable run, riding on the XBC wave. Congratulations to all GRN shareholders. Sell GRN and buy XBC before it opens on the TSX.

[ZouZS3]

you convinced me

[LongoGlueStick]

I am not an expert on the RNG industry, but it is my understanding that Greenlane does not service the digesters that they sell. Xebec does sell the equipment and also services the installations that they sell.  I wonder if Xebec could service Greenlane's installations, thereby helping to make Xebec more money on the service side?

[kulewater]

I think you'll see GRN start to fade. They are essentially a reseller of tec/parts and service. And most of their projects are under quoted and over expensed.  I believe there are still some very large motions happening beyond the news that has already been shared by XBC management. The amount of influence and reach the executive team now has is world class. They are lining up all the

[tamaracktop]

Personally, I have no idea where Greenlane is going.  I admit that it looked better at 65 cents on the way back up than it ever had, both fundamentally and technically, but now that it's $2.50, I don't have a clue.     I only know two things about Greenlane for sure, neither of which can be construed as a judgement call that it's topping out.     The first

[tamaracktop]

Google: What is a stock's beta. ....I just did. It provides a reasonable explanation of exactly what I'm talking about.