RE:Trading lvl to lowThe report yesterday is somewhat positive, but the following comments in the PR and MD&A are defintely not reassuring for future results.
1) During every MD&A they state their current cash position, however all of a sudden they only stated their working capital position from the end of the quarter. This leads me to question, are they hiding a rough couple of months since the end of Q1?
2) Zero mention of how Q2 is doing, and zero mention of further politcal revs. Leads us to believe Q2 is going to be ugly, and the possibility that poltical revs were an isolated occurence in only Q1. They dropped the statement that they were still expecting growth for the full year:
"Although it is difficult to assess the impact of COVID-19 on our business for the remainder of 2020, we have a strong balance sheet and working capital position resulting from the positive Q1 2020 results prior to the onset of COVID-19. We plan to utilize this relative strength in ensuring our business, employees and shareholders come out of this crisis on a strong footing"
This sounds like a signal that there is a sustained hit to the business on the horizon due to Covid-19, and that they are merely well positioned to survive given their balance sheet. If poltical revs were upcoming, you would think they would let investors know, but why is there no mention?
3) They talked up acquisition efforts before, but all of a sudden zero mention of this. What has changed? Maybe their business/financial conditions are not accomodative anymore? Big question marks with that omission.
Management thinks they can be coy, but it is easy to see through a lot of their verbiage and misleading and vague communication. But maybe they are just poor communicators, I don't know. Either way, they often seem like they overpromise and mislead rather than being upfront with investors; investors which may have invested based on their promises.