FormerXBC Inc XEBEQ

RE:The knife is on the floor

[AlwaysLong683]

VicesVertus2222 wrote: Other than that SHS long-term trend, I see Xbc has hit bottom.

The market overall has not been doing good last week. A lot of uncertainty with inflation, Fed moves to come, labour force shortage, bottle necks, Omicron and the always potential of a new variant, prediction of 2022 revenues not being as good as 2021, with slowdown of quantitative easing to a total stop, CPI may even be at a 40 years historical high

The S&P / TSX Composite Index closed at 21,222.84 on December 31 and stood at 21,084.25 at Friday's close, so it was down 0.65% for the week.

Looks like Canada's big banks helped support the index, continuing their share price gains from 2021.

XBC is small cap, so not fair to compare it to the composite which is dominated by large cap companies not in the renewable resource sector. 

I think a better comparison would be renewable energy companies in general or stocks like GRN, which I believe is very similar to XBC (both clean energy tech companies - I am not well-versed in this area, so please correct me if there are signficiant differences between the two).

While Oil and Gas E&P companies (which I realize is a bad sequence of words to use on a board like this) boomed in 2021 (e.g., the "XEG" ETF was up over 80% in 2021), because these companies got rocked in previous years, the 5-year return on this ETF still currently sits at a loss of around 3%.

I also follow power companies, and many renewable names in this sector also peformed poorly in 2021 pretty much across the board (AQN, BLDP, BLX, INE, NPI, etc.).

My theory is that everyone got overly-excited about the move to renewables in previous years, share prices shot up much higher than justified by the current state of the companies, and 2021 was a year that brought these names back down in price to align more closely with what they've actually accomplished to date and the realization that the move to renewables will likely be slower than many had originallly anticipated, so I think at least a portion of XBC's performance during 2021 was likely sector-related.

By the way, anyone in here hedging their best by placing 1/2 their allotted investment in clean tech in XBC and the other half in GRN, or are you folks all-in on XBC alone? Any other TSX-listed clean tech companies that posters in here have invested in? I'm curious and here to learn.

Finally, I have to say this is one of the most cordial BBs I've visited - civil discussions with seemingly very little bashing. Nice going.