GREY:XEBEQ - Post by User
Post by
GGreenon Aug 11, 2020 2:41pm
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Post# 31394072
Some house cleaning earlier in the day.. always a good thing
Some house cleaning earlier in the day.. always a good thingI'll put together somemore thoughts after a detailed read of the MD&A, but big picture:
- nothing to really complain about from Q2 results and the call today (although GP% and EBITDA were disappointing but not a real surprise in the marco encironment of COVID i.e. extra time to install, meant more costs etc etc) but they noted some learnings to be applied in this envicronment for Q4 installs so that's good)
- happy to see that they didn't pull or change the $80-90M revenue guidance for the year even though they are behind on their 2-3 acquisitions for 2020 whose revenue accretion is in the guidances. I thought was at risk but they must have a good feel for Q3 & Q4 if they didn't change it (especially if they plan to uplist - I'm sure they wouldn't want to uplist and then miss on guidance in their first TSX quarter)
- would have liked to see some GP % and EBITDA guidance but think that pulling it was the smart think to do (as opposed to having to explain why thy missed it because of ineffeciencies).
- like the steady growth, startegy, expanding (new) market reach
- can't complain about the contracted sales log ($85.5M) or quote log being over $1B!!!!
Bottom line: Steady as she goes!!! Fingers crossed on getting the execution right (inclduing internal ops: installing a new ERP system is a 8!7ch!!! to get right. Especially when you keep adding subsidiaries in different countries and then dealing with the consolidation which have the time turns out to be a fancy XL file because IT folks & programmers can't do FX consolidations.
Lastly, the house cleaning: didn't mind the larger than warranted stock price dip this morning - good time to top up on your holdings AND we got to clear out some driftwood shareholders that only add to volatility of the stock price (perhaps as a result of some stop loss orders getting raider). Oh well you can always buy back in at a higher price.
GLTA (the longs) and the shorts you because you'll likely need it from here to end of year.