RE:RE:RE:RE:RE:Q3 TranscriptHello,
Yes I had a very good chat with Jason certainly he knows the business like the back of his hand - for a finance guy I mean, lol. He certainly knows all the numbers for sure as you might expect and he didn't disappoint. Maybe he used to work in the field, I didn't ask.
Yea it would be great to see all senior management own a lot of shares and always add on weakness but you know what, different people, different circumstances both personal and financial. I won't kid you I would have liked to have seen a token buy at .30 but then again people would be asking why such a token buy and why aren't you buying more? Heaven help you if you want to sell!
Tell you what I've never owned shares in a co. that i worked in, not since 1989 before we got bought out by RBC and that was the last time I worked in a co. that traded publicly. I never felt that not owning shares stopped me from doing the best job I could every day and on many unpaid weekends and stats. So I think his non ownership; Caron's over 1 million and the original founding family's over 4 million shares is just fine by me in terms of share ownership.
By the way he did mention a fund or entity in Montreal owning a stake but he didn't mention "Boeckh". I immediately thought of BCA Research, which is kind of a Canadian investing royalty. I wonder if its the same Boeckh family or do a wikipedia enquiry on BCA. BRY has operated since 1985 in Can and 2011 in the US and it would be intersting how a Boeckh group ended up holding tiny BRY. As an aside: https://www.bcaresearch.com/history
They did $30m in q3 and the outlook in that NR suggests that this level will be unchanged in 2018. So I'm forecasting $120m in 2018. The new credit arrangements will save high 6 figs in interest costs vs the previous terms. I think they'll do $.18 in operating net income next year and this assume current business operations.
I digress: The Q3 NR refers to now being able to look at expansion opportunities. This can mean entry into new basins, relocating a warehouse within a basin and / or changes to their offering that bring in higher margins. I think its really premature to get excited about higher margins, if only because as or if they enter into mixing and more of a fluids component the increases will take time and I doubt it will make a large impact on the co's. total sales no. and impact the total gross margins very much. I didn't ask, that's just my thought on the subject.
I didn't ask about taxes, but i should have. They lost a lot of money in the past 3 years and are paying tax(?). In the Q3 statements their YTD tax rate is 29% so I said what the hay and stuck in 35% to be conservative or so was the plan. So witih a measly 24 million shares FD and unchanged for years (no share consolidations, no issuances during years of pain which impresses the H out of me and it should you) it's easy to use your own estimate of what the right PE ratio should be on this $15m nano cap co (FD at $.63 share price). At 6x you get $1.08 and 8x you get $1.44 for the sake of playing w/ numbers - and assuming my EPS est is ok.
The CC transcript in around page 5 gets my eye, where it oultines how it will soon start to get the word out, after years of big losses and pain. Website update is now a top priority. Please ensure you all do your own DD, though, ok?