FormerXBC Inc XEBEQ

woop woop

[TeamEddie]

“The company surprised us by disclosing major losses at its renewable natural gas (RNG) business,” he said. “Despite the shares cratering 31 per cent in reaction, we don’t see a compelling risk/reward. Firstly, it’s highly likely, in our view, more writedowns are taken on the 10-12 unprofitable RNG projects (it’s very hard to capture all unknown costs on the first pass). Secondly, management expects flat RNG revenue in 2021 while the rest of the industry posts double-digit growth, auguring for a lower valuation. Thirdly, 2020 featured multiple guidance reductions from management, and it will now take time to reestablish creditability with investors